Century has said it plans to lease the property from the city. But an opposing citizens' group known as the Committee for A Responsible Cinema Project said the street-closure idea violates California law. The group claims that such closure would require a public-approval process and has threatened to sue.

The theater project is part of an attempt by San Mateo to make its downtown more accessible and popular--an effort mirrored across Silicon Valley, as towns begin to build their own suburban downtown areas.

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