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I think gutted is probably too strong of a word. People who worked in the building during the 90's said the balcony...and everything else above the first floor was still there. In fact, your receipt from Musicland (long-time tenant) had "Varsity Theater" printed on it. Further evidence lies in the fact that all the fire doors above the first floor are still visible...although they took down the escapes after a small fire (maybe ten years back). It was never a pharmacy...always multiple tenants. I'm not sure...but, you may be giving it a few too many seats.
Most surprising is the fact there was consideration given to renovating it as a performing arts center four or five years ago, although it proved to be cost-prohibitive. Maybe it will come out of hibernation some day. Here's an article:
http://www.evanstonroundtable.com/rt2001/Roundtable060601/
I wonder who owns the building, and what they think of all this...