The theatre first opened in 1950 with its neon lights and historic architectural style. Today, it's known for showing both independent films and big-budget movies on two screens.
Novakovic says business was good prior to the pandemic.
"We cut down our staff to one employee and there's nothing else we can do on that," Novakovic said.
Now, they've asked the city to let them operate rent-free for the next 18 months. Some nearby merchants support the rent reduction, saying the theater helps boost downtown business.
On Tuesday night, the City of Davis offered a Hollywood ending by approving the free rent proposal. City officials say it's better to have the theater remain open than have an empty boarded-up building that creates an economic blight.
Another movie theater closed in downtown Davis last May, leaving just the varsity theatre and one other theater in town.
Money from the rent payments had been going into a special fund that pays for the maintenance of city-owned buildings.
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