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Tawas City had a theater going back as far as the 1930's at least. This theater was also known as the State and the Bay. Another 1970 article tied it all together, mentioning the other names it operated under. We know the State and Rivola are the same because the building is clearly the same in the historical photos. The article states it was also the State and the Bay. So, it was all 3. It was being used as a church before it was razed.
The reason it was razed is so the land could be used for extra parking for Keiser Drug at 537 W Lake St which is gone also. I figure the theater was at 541 next door. A look back at the 1958 and 1975 aerials shows that there were several buildings along that stretch and you can even see the theater in 58 and being gone by 75. See the comparison aerial photo below. I have marked the wooden building in the street view as Keiser Drug but it may be the original structure was razed. The drug store building in the historical photo looks to be brick. The location was right either way.