The truth is that the local tyrannical government doesn't want theaters because they attract teenagers. Many towns don't want any establishment that will attract teenagers. To prevent the construction of movie theaters, skate parks, and arcades, the local politicians actually forbid private individuals from starting these types of businesses. When Hitler wanted to burn books, he first burned pornography and then Shakespeare. American politicians use the same technique to outlaw businesses that cater to teenagers.
First politicians attack free enterprise by outlawing or banishing adult-entertainment businesses.
Once the public allows this attack, the politicians are free to outlaw any businesses. The ban on movie theaters in Pacific Beach is no different than bans on strip clubs. If a town outlaws strip clubs, the usual patrons will drive to another town or settle on watching a video. However, when a town bans practically all businesses that cater to teenagers, then the streets become filled with bored teenagers that have nowhere to go. To deal with the boredom , teenagers start racing cars on deserted streets, getting drunk in parks, or skateboarding in parking lots.