HAYWARD — Some time before or shortly after America elects its next president, downtown Hayward should finally have its long-awaited movie theater.

The Hayward Redevelopment Agency last week gave the Cinema Place project a shot in the arm by authorizing a $1.5 million subsidy to help Danville-based developer Blake Hunt Ventures build the B Street entertainment complex.

The redevelopment project, set to be completed by late 2008, has now cost the city a little more than $12.7 million — most of that to buy land formerly occupied by an Albertsons supermarket and to build a 244-space public parking garage designed for cinema and restaurant patrons.

Along with appropriating $1.5 million from the agency's tax increment fund balance, the agency also is going to waive building permit fees for thedeveloper as long as they don't exceed $130,000.

Most of the money will go toward site improvements, such as landscaping, grease interceptors, soil vapor barriers and an $88,000 covered walkway connecting the new parking garage to B Street.

"For $88,000, I hope we can get something that looks fairly decent," City Councilwoman Barbara Halliday said at a meeting Tuesday. "That (amount) kind of popped out at me as seeming kind of high."

Despite a few such concerns, the redevelopment agency, which is really just the Hayward City Council acting in a different role, unanimously voted Tuesday to authorize the extra money.

The subsidy to Blake Hunt Ventures, according to a city report, "would be structured as a loan to be repaid from future sales proceeds of the development, in the event that certain investment return thresholds are met." Officials estimate the owner would need to sell the development for more than $24 million for those thresholds to be achieved.

Councilman Bill Ward called it a "sound investment" for a project that will bring money and benefits back to the city in various ways.

"I don't think that added investment, over the long haul, is going to be detrimental," Ward said in an interview.

Because most forms of entertainment are not taxed, movie ticket sales won't bring much revenue back to the city. But officials and downtown merchants hope the cinema will serve as a catalyst to generate other commercial activity and more thriving businesses in the district.

"There are spinoffs associated with the project," Ward said. "We certainly hope that some of the users of the theater will spend dollars, shop and eat beyond the complex."

Blake Hunt Ventures asked for the city's help after delays caused the project's cost to escalate. The developer originally had an agreement with Century Theaters, but that company was bought by a bigger cinema company, Cinemark, in the fall. The agreement still stands, but the sale process caused months of uncertainty and delay.

Blake Hunt said it has now signed or is scheduled to sign agreements with four restaurants: Saxby's Coffee, The Tiki Grill, Red Brick Pizza and an as-yet undisclosed deli. The biggest restaurant spot, which will overlook B Street from a second-story balcony, is still available to lease.

Once the complex is built, Blake Hunt intends to sell it to Redwood City-based investor Matteson Realty, which will manage it. Matteson also has separate plans to build urban-style condominiums on the nearby corner of Main and C streets.