Agreeing with the Committee for Responsible Cinema citizens group, Judge John Runde ruled that the city "was under an obligation to follow one of the various statutes governing closure of a public street," and ordered San Mateo and partner Century Theaters to hold public hearings on the closure of Plaza Lane before it can vote again to approve the project.

The theater is part of a plan to revive the city's downtown that also includes a Caltrain parking garage and retail shops. The Peninsula cities of San Mateo, Redwood City, Daly City and Sunnyvale also are planning multiscreen theaters. All are expected to open within the next two years.

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