The Great Depression did much harm to the legitimate-theatre business, and in 1936 the New Amsterdam closed. It reopened on a limited basis in 1937 but was soon converted to a movie theatre. The New York City Industrial Development Corporation raised a bond issue to purchase the property in 1982 and retained title while responsibility for development and bond payment rested with the Nederlander Organization. In 1984, the Empire State Development Corporation and New York City Economic Development Corporation purchased the property. After having spent on the property, Nederlander announced in 1990 that it did not consider restoration of the property to be economically feasible; thereafter in 1992, a settlement was reached where the New York State Urban Development Corporation would take ownership and begin "structural stabilization" immediately through the 42nd Street Development Project.