By Emily Schopfer
ATLANTIC HIGHLANDS – Owners of the property that includes Smodcastle Cinemas may seek a minor subdivision to potentially sell the adjoining retail lot.
During its March 5 meeting, the Atlantic Highlands Planning Board held an informal hearing on a proposed subdivision of 84 and 82 First Avenue, otherwise known as Block 97 Lots 7 and 8. According to borough records, 82 First Ave. is home to the old-school movie theater Smodcastle Cinemas; 84 First Ave., a commercial retail space, is currently leased by Nicholas Creamery, an ice cream shop.
This informal conceptual review was to receive feedback from both the board and public; no formal applications for subdivision have been made to the planning board.
The borough received a Feb. 26 letter from the property owner of both lots, First Atlantic Holdings LLC, outlining conceptual plans for a subdivision. “The purpose of the subdivision is to create one lot that has the entire Movie Theater use and one lot with the commercial retail unit,” read the letter.
First Atlantic Holdings LLC wishes to subdivide the two lots so the movie theater operation will be contained on one lot, and the commercial retail space on a separate lot. No changes to infrastructure, roadways or business operations are expected to be necessary for either lot.
Atlantic Moviehouse (now Smodcastle Cinemas) was purchased by a group of local filmmakers in 2022, including Red Bank-born and Highlands-raised filmmaker Kevin Smith. Smith is also the owner of Jay and Silent Bob’s Secret Stash comic book shop in Red Bank.
While Smith’s high profile has brought positive attention to the theater in recent years, co-owners Ernie O’Donnell and Jeff Swanton explained during the March 5 meeting that, unfortunately, it is just not enough. As Smodcastle Cinemas, the theater has opened its doors to more than movies, with unique events, comedy shows, and even weddings taking place there. Both O’Donnell and Swanton said things are going well, but not fast enough.
“We’re really proud of what we’ve done over the past four years,” O’Donnell said, but this subdivision is their “Hail Mary.”
This desperation pass would entail no more than lot line changes on a map. However, these line changes could allow for a possible sale of the commercial space at 84 First Ave., which in turn could provide a “war chest of money to infuse into the theater,” O’Donnell said.
While the board will not take any official action at this time because this was not a formal application, it was supportive of the concept. While the theater is certainly unique, this type of subdivision is not, according to the planning board.
Members of the public in attendance were also supportive of the idea “I think that anything that this body can do to help these gentlemen move this project forward, they should,” said Mark Fisher, an Atlantic Highlands resident. “It would be a shame if this building fell into the hands of a developer… I hope you’re successful,” he told O’Donnell and Swanton.
“It’s painful to think we could lose the theater,” O’Donnell said.
When they purchased the theater in 2022, Swanton recalled thinking, “We love it so much… How could everyone else not love it, too?” The theater, which has been a community staple for over a century, has a “lot of historical value,” Swanton said, for “past, present and future generations.”
The pair even noted the possibility of partnering with Netflix Studios Fort Monmouth in Oceanport and Eatontown, proposing a movie screening collaboration between the industry giant and the hometown theater. “Exciting things could happen down the road; we just have to get there,” O’Donnell said.
The article originally appeared in the March 12 – 18, 2026 print edition of The Two River Times.
