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CHATHAM The Board of Selectmen on Tuesday unanimously upheld a Historic Business District Commission decision to deny a demolition application for one of the five buildings on Monomoy Theatre property. Selectmen were in unfamiliar territory as a designated route of appeal for the November commission decision that denied theatre owner Gregory Clark demolition applications for all five buildings, part of a theater complex that has been in operation since 1938 and has supported college student summer theater since 1958. Town Counsel Patrick Costello told the selectmen they were to decide only whether the historic commission decision was arbitrary and capricious or went beyond the scope of the commission s authority. With the next step potentially a state Superior Court appeal, the board treaded carefully. The board got Clark to agree to go back to the historic commission, possibly at its Jan. 6 meeting, to try to gain approval for the demolition of the other four buildin ....