Dec. 20–LEAVENWORTH — Icicle Village Resort launched its latest expansion project with the announcement here Monday of more suites, more meeting space and more spa services.

One casualty: the resort’s movie theater, Junction Cinema, will close Dec. 31. It’s the only theater in the upper Wenatchee Valley.

“It’s been our vision for 10 years to evolve into a fully-integrated, middle-to-upper income resort with a focus on families and conferences,” said Paul Jinneman, spokesman for the four-family partnership that owns the resort. “We’re moving closer to making that vision a reality.”

Foundations for 14 additional guest suites and a new 2,700-square-foot ballroom were poured last month in preparation for the beginning of above-ground construction in March with completion in mid-summer. In January, renovations begin on the Icicle Junction activity center, which includes updating the sports bar, relocating the video arcade and creating a gathering area for families and conferees.

The renovations will also expand the resort’s Therapeutic Touch Wellness Spa into the vacated theater space. Construction of five additional massage-treatment rooms, a steam room and other amenities could be completed by mid-April. Spa owner Chandra Villano will continue to help oversee the new facility.

The activity center will close Jan. 6 through completion of the remodel in mid- to late-February, Jinneman said.

The 13-year-old Junction Cinema will close New Year’s Eve with an 8 p.m. showing of “The Hobbit: The Desolation of Smaug.” In celebration, ticket holders will receive a free small popcorn and soda.

“The closure is mostly due to the change in movie projection technology,” said Jinneman. “Film projection is going away, and the new digital equipment is expensive.” New digital projectors range in cost from $40,000 to $80,000.

In that regard, the Junction Cinema joins with hundreds of small independent theaters across the U.S. in deciding whether to go digital or go dark. Several major studios announced last year that they would cease distributing movies on film by the end of this year. A global cutoff of the old film technology is expected by 2016.

“We had to take a look at all the factors of being in the movie business,” Jinneman added. “Leavenworth is busy about 240 or 250 days a year and can provide us lots of movie customers. But other days — much less busy days — we’re lucky to get two customers a showing.”

Icicle Village Resort opened in 1992 as a 65-room Best Western hotel and over the last 21 years has added the arcade, mini-golf course, swimming pools, spas, movie theater and an additional 77 new hotel rooms, suites and condos on its 7.5-acre site.

Reach Mike Irwin at 509-665-1179 or irwin@wenatcheeworld.com. Read his blog Everyday Business or follow him on Twitter at @MikeIrwinWW.