That was the Electric Theater AKA The Kinetic Playground, owned by Aaron Russo, who later was Bette Midlers manager. This was the old Michael Todd theater. The seats were taken out, floor leveled, and theater screens were placed from ceiling to 8 feet off the floor creating a circular room. A projection booth called the eye was installed in the center of the ceiling (accessed from the floor above) which projected a Filmore type lightshow around the entire room. The stage sat against one wall. Nefarious activity as the cause of the fire was the rumor at the time.
I hung out there...saw all sorts of shows....Jeff Beck with Rod Stewart singing, Jefferson Airplane, Zep (first Chicago performance) , Iron Butterfly, T Rex on and on and on.........
When it burned all the activity moved two blocks east to the Aragon Ballroom where I worked for a year.