The theatre was nearly demolished in the 1980s and '90s after the owners placed a destruction order on the plot. However, due to the efforts of an objecting group, the St. James was eventually spared and restored to its former glory. The alarm had been risen after a photographer, Grant Sheehan, was told by the theatre's curator that the St. James was set to be demolished by the Chase Corporation. For nearly a decade, a wrecking ball sat poised above the theatre, but it was never used after the owners were finally persuaded to save the property. The company looking to build on the site, Chase, were still angered by the result, so a trade off was made by the committee vouching for the St. James; Chase would be allowed to build a tower in Wellington exceeding current height restrictions if the committee could save the theatre. The offer was highly contested, with some companies near the new tower protesting at its aimed size. The Opera House objected to the St. James's restoration, saying that the city would not be able to sustain two theatres.