HAYWARD -- Century Theaters will be an anchor tenant for the downtown cinema complex in the works, lead developer Brad Blake told the City Council Tuesday night.

The San Rafael-based movie theater company has signed a letter of intent to lease space for a 12-screen, 1,800-seat facility in the proposed Cinema Place development, said Blake, chief executive officer of Danville-based Blake Hunt Ventures.

Century joins Cost Plus World Market in anchoring the project, expected to serve as a prominent downtown gateway on land the city owns at the corner of Foothill Boulevard and B Street. The project's target opening date is the 2005 holiday season. The city hired Blake Hunt Ventures to develop the project.

City Council members, who have expressed frustration in the past that there are no remaining Hayward movie theaters, beamed with excitement at Blake's news.

"I cannot tell you how delighted we all are," said Mayor Roberta Cooper, later adding, "We'll be waiting with bated breath."

The new theater, on the second floor of the planned 113,000-square-foot complex, would feature stadium seating, digital stereo surround-sound, wall-to-wall screens, rocking love seats and a Cinema Caf, company officials said.

Blake, who considers the project "a catalyst for the renaissance of downtown Hayward," said Century Theaters was the best choice for the project for its strong financial backing, reputation as a first-class operator and prevalence in the area. With their industry leadership and strong Bay Area presence, he said, "we think they'll be around for a long time."

Not only will this be a smaller theater than neighboring Century projects, he said it's a "niche theater" that should attract people who like the idea of going downtown instead of going to Bayfair Mall or fighting for parking in Union City.

City Manager Jesus Armas added that Century has agreed to offer independent or foreign films, as the council had requested, providing there is a market to support them.

Century, the seventh-largest theater company in the United States, also operates theaters in Fremont and Milpitas. The 50-year-old family company soon will open a 20-screen theater at NewPark Mall in Newark, company officials said.

Century officials added that the company also has been successful in downtown projects, including recent endeavors in Pleasant Hill, San Mateo and Walnut Creek, which was developed by Blake Hunt Ventures.

Blake Hunt Ventures also is working with Century on a large theater complex soon to be constructed in downtown Redwood City.

Blake said interest in Cinema Place from other retailers has picked up, especially since he announced two weeks ago that Cost Plus is on board. The news about Century will only fuel that interest, he said.

"Century really puts a stamp of approval on the project for some tenants," he said, adding that it gives them a better idea of the volume of potential customers.

Blake said his firm has been working with Century on designs for the building for a couple of months now. He expects to meet with city staff next week to review early architectural plans.

Preliminary site plans call for a ground level that houses up to nine shops, including Cost Plus. Upstairs would be the movie theater and up to three retailers, Blake said.

Behind the retail center, along C Street, there would be a two-level parking structure with about 200 spaces for shoppers and diners only. Drivers would enter this structure via an alley off B or C, and parking there would be limited to 60 or 90 minutes, he said.

Moviegoers would park in one of the nearby municipal lots or in the parking structure the city plans to build to go along with the project across the street on the existing Municipal Lot No. 2. That proposed structure would add about 165 parking spots to the 700 existing spaces downtown.

The garage construction, which could take a year to 15 months, is expected to wreak havoc on downtown parkers who won't be able to use the municipal lot. Simultaneously, they will lose the parking lot on the Cinema Place site, which used to be an Albertsons store.