I’m standing on Cherokee Street, the crane is sitting on New Street. Around 1980 or so, somebody, maybe the city, decided to tear down the old Rialto Theater building. When I was a kid, it was referred to as “The Rathole” and mom wouldn’t let me go there. By the time of this picture, it had been AY’s Restaurant for a number of years and I think there had been a billiards parlor (pool hall) in that side door. Upstairs were apartments.
Bob Lawrence's Kingsport 
The Riato was definately a bit scuzzy, but it was THE place for nerds to go for science fiction films. It closed as a theater in the early 1960s, and AY’s Restaueant opened in the lobby. The audutorium was divided into a billiards hall at ground level and apartments upstairs. The building was damaged by a gas explosion in the mid 60.
Thank you for your information. Mom strongly discouraged me from going to the Rialto, which was more or less across the street where we lived. Looks like I missed out on some vintage sci-fi films!