I would love to see a big theater, or theater + film, festival here in Middletown. When we lived on the West Coast, we loved going to Ashland's Oregon Shakespeare Festival or Cedar City's Utah Shakespeare Festival (links below). Both take place in small towns with universities willing to help host these events. Both have won Tony Awards. I can only imagine that they bring a lot of positive things to both the communities and the universities. I haven't seen anything quite like them out here yet.
Oregon:
http://www.osfashland.org/
Utah:
http://www.bard.org/