DANVILLE — Clear icicle lights hang from the Fischer Theatre, celebrating the holiday season.

But the lights remain off inside, and the theater remains closed as city officials and arts supporters look at how to keep the building viable.

The Danville City Council is expected to act on an agreement this month to take over ownership from the Vermilion Heritage Foundation, which oversees the Fischer,

“The city has interest in taking ownership of the building for only the purpose of maintaining its utilities. But we would require the foundation board to spearhead the fund-raising efforts for its restoration,” Mayor Scott Eisenhauer said.

Maintaining the utilities would curb further deterioration to the building.

Eisenhauer said the projected costs to the city for utilities are minimal because the city receives a reduction on natural gas and electric rates as part of its agreement with AmerenIP.

The city can take over the theater’s utility costs at a small fraction — about $1,200 annually — of what the foundation pays, he said.

Vermilion Heritage Foundation Board President John Dreher said the city receives a group rate from utility providers, unlike the foundation, which stands alone.

“It’s a huge difference,” Dreher said of the utility costs.

The difference will mean saving thousands of dollars per year. He estimates utilities average $800 to $1,000 a month for the foundation.

“For the city, it will be far less expensive,” Dreher said, adding it’s not uncommon for cities to step in to help struggling theaters.

He cited the successful Virginia Theatre in Champaign, which the local park district took over.

The city also would add the Fischer Theatre to its insurance, which, again, would cost less for the city than the foundation because the city insures multiple buildings, Eisenhauer said.

The city would take over heating, natural gas and water costs, in addition to the Fischer’s insurance. The foundation will continue to cover telephone and other expenses.

Talks about the city stepping in started a few years ago.

As part of the agreement, the city will approve any event to be held in the theater.

Eisenhauer said this will prevent an overload of events during any given month, causing large utility bills.

“We feel that foundation progress needs to be made on the future of the building,” he said.

Detailed structural and feasibilities studies must be completed to determine renovation costs and make a decision about the theater’s future, Eisenhauer said.

Previous studies are too general, and restoration cost estimates are wide-ranging, from $1 million to $12 million, he said.

Eisenhauer said a $35,000 to $40,000 grant is needed for a detailed study to define renovations and costs.

“In the first quarter of next year, that’s got to be done,” he said.

Dreher said the heritage foundation has worked tirelessly over the years to see much of its fundraising efforts go to taxes, insurance and utilities.

“We felt like we were treading water,” he said.

Moving the building to public ownership will allow the foundation to conquer those months of debilitating expenses, he said.

“It changes our focus to really work on a capital campaign to restore it,” Dreher said.

Even though the theater closed during the summer, Dreher said the foundation board continues to meet.

“We were laying low in order to give the mayor the opportunity to develop this agreement and potential move and transfer,” Dreher said.