The Red Clay Theatre has been caked in mold since the September 2009 flood. A portion of the building will be razed. The Deluth Historical Society regrets the decision, but mold in the 1908 era structure made the decision inevitable. However a 28,000 grant from the Federal Emergency Management Agency will be funding a new roof and flooring. And the demo allows an unobstructed view from the highway of retail shops older than the Red Clay Theatre which were previously blocked.