It will be designed to accommodate plays and small musicals, she said.
The group wanted to do smaller, lesser known musicals which focused more on ensemble work, rather than serving as a "star" vehicle for a performer.
Currently the theater produces four shows per year, usually including a major musical, a comedy, a drama and a smaller musical.
Big shows always have one major advantage over smaller musicals: money.
"The size of our audience could only support workshops or small musicals, which was contrary to our mission."
The theatre lost all of its funding and produced small musicals in difficult conditions.
Mr. Papp said he would also consider smaller musicals for the series.
A governing board with an executive director would distribute the money to playwrights, workshops and productions, including original small musicals.
"We are building an ideally suited playhouse for plays and small musicals," he said.
When I was small musicals didn't feature in my world and were considered "posh".