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I found one tiny mention of this theater in the Detroit papers from 1942. Apparently it was built by the city of Hazel Park in 1928. Everyone has the same grainy photo but I am not even sure of the origin of it.
Source: Shirley Campbell
The theatre was on the east side of John R south of Nine mile road in Hazel Park, Oakland Co. MI. I walked past it many times growing up and going to school there. I have enjoyed looking at your web site.