The complex, to be owned by the AMC Entertainment chain, is a key component of a $100 million plan to revitalize the beleaguered shopping center.

Built in 1976, and once a regional draw, Vallco has fallen on hard times. Changing styles in shopping centers and competition from nearby malls such as Santana Row have contributed to the decline. The city now hopes Vallco can be returned to regional prominence and help make Cupertino a destination. The movie theater complex is seen as key to making that happen.

"It is a historical day for Cupertino," said Mayor Patrick Kwok at the April 13 announcement of the movie theater deal. "It will be an engine for the city and bring a lot of business to the community."

Ideally, theater customers will also shop at the mall's stores.

To help make that happen, DPR Construction--the company that will be doing the work--will tear out the center of the mall and replace it with escalators. The moving stairs will lead to the theaters, which will be built on top of the mall.

"The theater is going to activate the mall," said Todd Stoutenborough, of Perkowitz + Ruth, an architectural firm overseeing the project. Stoutenborough said that the AMC chain typically brings with it such national retail outlets as Borders or Barnes & Noble. However, other than the theaters, future retail operations at Vallco, including plans for its existing stores, have not been finalized.

According to the city's masterplan, activity at Vallco will also be sparked by a mix of residential and retail properties surrounding the mall on Wolfe Road and Stevens Creek Boulevard. "It's going to make it like a town," Stoutenborough said. He also predicts more individuals will visit Vallco in a typical year than visit a major league ballpark.

To accommodate those crowds, 1,000 parking spaces will also be built. Stoutenborough also said the accessibility of nearby freeways such 280 would help mitigate traffic problems.

If all goes as expected after the theater opens (tentatively scheduled for November 2006), commercial activity at a revitalized Vallco should be a boon to Cupertino's finances. One-third of the city's general fund revenue comes from sales taxes, and recent tough economic times have depleted that source of income.

"[The new Vallco] is not only critically important to Cupertino's financial vitality," said Councilwoman Sandra James, "but critically important to its emotional vitality."