In June 2008, the Paramount Theatre was severely damaged by the worst flood in the history of Cedar Rapids. At the crest of the flood, the building was inundated by approximately eight feet of water on the main level. The basement and sub-basement were completely flooded. The Flood of 2008 caused over $16 million in damage to the historic theatre.

After cleaning and stabilizing the building, the City hired OPN Architects, Inc. and a team of professionals to rebuild, restore and improve the theatre. The goal of the reconstruction project is to create a financially viable multipurpose venue suitable for touring shows, symphony, theatre and opera performances, organ recitals, community productions, film showings and community gatherings to better serve eastern Iowa through the 21st Century.

The Paramount Theatre Restoration Project includes flood-damage repairs, building code upgrades, hazard mitigation measures and several proposed upgrades and improvements for performers and patrons.

The most notable improvements include:

  - New seating layout with improved patron comfort

  - Improved acoustics and lighting

  - Improved concession and gathering spaces

  - Expanded orchestra pit

  - Expanded stagehouse & wingspace

  - Improved loading area & back-of-house

  - Exterior improvements