HAYWARD, Calif. (KGO) — The City of Hayward is doing its part to revitalize downtown and recently spent millions to purchase a movie theater.

Some people think this is a risky step. Others think it is exactly what the city center needs.

Hayward Mayor Mark Salinas doesn’t like the empty stores downtown.

“Like many downtowns in the state, there are vacant buildings owned by people who may or may not live in the city, and they’re not renting the buildings, they’re sitting on them. I don’t know what they’re waiting for,” Salinas said.

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He said buildings usually remain empty for long periods of time. This means a huge loss of tax revenue. They become vulnerable to graffiti and vandalism. Local residents associate this with crime.

When the downtown movie theater came up for sale, the city didn’t want it to end up the same way it had before, so they bought it.

The goal is to transform downtown Hayward into a destination in the East Bay.

“The city has a very good track record of attracting 10,000 to 15,000 people to all of our downtown street festivals,” Salinas said. “We clearly see that people want to be downtown for entertainment, shopping and generally be part of a larger scene.”

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Salinas said the theater serves as an anchor for a new economic development plan. He acknowledges that movie theaters are struggling in the wake of the pandemic. But owning a theater means they can repurpose it for things like live events. And it gives the city a chance to try new business concepts, especially those targeting students.

“Cal State East Bay and Chabot College have about 50,000 students combined, so it’s about finding retailers and economic drivers that will draw people downtown,” Salinas said.

Lucy Lopez, president of the Hayward Chamber of Commerce, said the cinema is also a family-friendly venue, which is important.

“We’ve worked very, very hard to stabilize and reimagine downtown for families to be a family-friendly environment. It’s critical to maintain that anchor to sustain many of the businesses in the downtown district,” Lopez said.

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Alejandro Gamarra, owner of Buffalo Bill’s brewery across from the cinema, praises the city’s leadership for buying the cinema as “courageous.” His employees see it as a turning point.

“It gives people a reason to come downtown. It contributes to the growth of the district, especially the small merchants. It gives us the opportunity to grow and survive even in this difficult economic situation,” said Luis Herrera, district manager for Gamarra’s restaurants.

Salinas knows it is a bold step. But he is happy with the chances.

“When we started thinking about it, I was excited. I don’t know many cities that have made such investments in economic development, especially cities our size. I’m pretty optimistic. And if it doesn’t work, we’ll just sell it,” Salinas said.