The Chicago Theatre This famous theatre was the first large, lavish movie palace in America and was the prototype for all others. This beautiful movie palace was constructed for $4 million by theatre owners Barney and Abe Balaban and Sam and Morris Katz. The 3,600 seat auditorium is seven stories high, more than one half of a city block wide, and nearly as long. The vertical sign "C-H-I-C-A-G-O," at nearly six stories high, is one of the few such signs in existence today. **Source: Chicago Theatre Website