Hayward buys movie theater to help boost downtown into thriving East Bay destination

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

Some say it's a risky move. Others say it's what downtown needs.

Hayward Mayor Mark Salinas doesn't like the empty storefronts in the downtown.

"Like many downtowns across the state, we have empty buildings that are owned by people who may or may not live in the city, and who sit on them and don't lease them. I don't know what they wait for," Salinas said.

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He said buildings usually stay vacant for a long time. That's a big loss of tax revenue. They become vulnerable to graffiti and vandalism. Residents link it to crime.

When the downtown movie theater came up for sale, the city didn't want it to end up the same. So, they bought it.

The goal is to turn downtown Hayward into an East Bay destination.

"The city has a very strong track record of turning out 10,000 to 15,000 people at all of our street parties in downtown," Salinas said. "Clearly we see people in downtown wanting entertainment, retail and generally being part of a greater scene."

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Salinas said the movie theater serves as anchor for a new economic development plan. He admits that movie theaters are struggling post-pandemic. But owning it means they reconfigure it, for example, for live events. And it gives the city a chance to try new business concepts, especially those that target students.

"Cal State East Bay and Chabot College combined is like 50,000 students. And so, it's finding those retailers and finding those economic generators that will draw people to downtown," Salinas said.

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

"As we have been working very, very hard to stabilize and reimagine what downtown can look like for families and family-friendly environment. It is critical to keep this anchor to help feed a lot of the businesses in the downtown district," Lopez said.

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Alejandro Gamarra, owner of Buffalo Bill's Brewery across the street from the movie theater, praises the city leadership as "courageous" for buying the theater. His staff sees it as a game changer.

"It gives people a reason to come downtown. It helps the district grow, especially with the small merchants. It gives us an opportunity to grow, stay alive in this tough economy as well," said Luis Herrera, a district manager for Gamarra's restaurants.

Salinas knows it's a bold move. But he likes his odds.

"When we started thinking about doing this, I was excited. I don't know too many cities that have made these economic development investments, especially cities our size. I'm pretty optimistic. And if doesn't work, well, we'll sell it," Salinas said.