Certainly sounds to me like more of a personal vendetta between Berkowitz and the owners.  

Since the building has been an eyesore for years and since the owners do not have the inclination or finances to tear it down or repair it, the city had an opportunity in May to allow it to be removed as well as an improvement to the Theater.  That was not approved.  Why?
Money?  

Many vacant properties but only this one gets complaints?  Only this one is targeted for surveillance and search warrants?  This one is the reason for the City to add a new law which gave them authority to overrule a previous agreement and the National Fire Code?

Certainly it needs to be removed or repaired and used but perhaps this is more of a "personal" vendetta issue to some in high places?