My college was in a small town surrounded by nothing. Because of this, the
theatre drew crowds from miles around. Our theatre was a focal point of the arts for the area. Posters went in every shop window for counties away.
In the school I teach in now, I work in a city full of theatre. Our shows bring very few community members to our campus. Most people don't even know we have a theatre unless they are a student or faculty.
So, my only input on this post is that it really depends on the place. If your theater is the only large one in town, the value is huge. If you are one of five, it may be hard to keep it up.
Good luck.