The Palace Theater was designed by John Eberson and built by "Max and Sons" in 1924. When the theater opened it featured live stage shows, vaudeville acts, and motion pictures. With the decline of US Steel and the City of Gary, the theater closed in 1972.
When the Miss USA pageant was held in Gary in 2002, Donald Trump renovated the front of the theater. Sheets of plywood covering the windows were painted to depict a false interior, and an external marquee was mounted, declaring "Jackson Five Tonite". Plastic signs reading "Jackson Five Forever" were placed on both sides of the marquee after the death of Michael Jackson. Both signs have since been lost to the wind.
Though the Jackson 5 are originally from Gary, they never actually performed in the Palace Theater.
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