A recent transaction has renewed hope in squashing decades of futility in bringing the downtown Novato Theater back to life, albeit with one sticky caveat.

The Novato City Council last month unanimously agreed to sell the dormant Grant Avenue theater for $50,000 to a nonprofit overseen by Lark Theater director Bernice Baeza. Now, Baeza's Novato Theater corporation has until June to raise $750,000 in additional financing and secure a $1 million bank loan for the sale to be finalized.

Councilwoman Denise Athas said recently that Baeza is doing her due diligence following more than a year of discussions with city officials.

"She has many people who are willing to help her, some pro bono workers and that will help a great deal in the overall finances," Athas said. "If anyone can do it, she can. We all need to stand behind her and help her be a success. A thriving downtown can be the outcome."

Re-opening the doors at the 399-seat single-screen theater at 924 Grant Ave. would be a boon in the city's ongoing effort to inject life into the downtown business ambiance following a multimillion-dollar streetscape makeover, the arrival of the Millworks complex and the renovation of Novato City Hall within the past five years.

The theater has remained dark since 1991. Over the years, there have been a handful of aborted attempts by various parties to revive the entertainment complex.

The city, which took ownership of the site in 2004 from the disbanded Novato Theater Restoration Committee, sought out interested buyers and received four responses, according to Ron Gerber, the city's redevelopment and economic development administrator.

He said Baeza was seen by the council "as someone who has a demonstrated track record and can successfully integrate community programs with films."

In 2004, Baeza oversaw the refurbishment of the landmark Lark Theater in downtown Larkspur. She helped establish the site-saving nonprofit ownership group that offers simulcasts of theater and opera performances, viewing of sporting events and other activites in addition to film screenings.

"Her success at the Lark is what I can envision here in Novato," Athas said. "My hope is that this is a huge success, that people will be coming downtown to go to the theater, dine in our restaurants and shop in our stores."

Baeza said the theater has brought "increased economic vitality" to Larkspur.

"The restaurants, galleries, gift shops, retail stores are mutually supportive of the theater," she said.

Baeza said responses from the public and downtown business merchants and building owners has so far been positive for the Novato project.

"Community-based projects have the best chance for success because we all have an opportunity to participate, volunteer, provide services as well as donate funds, thereby making it our own," she said.

Don Cliver, president of the Downtown Novato Business Association and manager of the local Sonoma Bank branch, said the association was "very excited about the prospect of that location becoming active again."

He said the group had yet to be approached by Baeza for help with fundraising, "but like most of Novato, we will welcome any suggestions or requests she has."

At a recent Novato City Council meeting, some residents questioned the $50,000 sale price and described it as paltry. Gerber said the theater, built in 1945, was in need of substantial renovation and the property was restricted for use only for film or performing arts, limiting its attraction to developers.

"In some respects, we are fortunate to find an experienced operator who is making a commitment to raise the money on her own," he said.

As a condition of the sale, Baeza will be giving updates to the city every 60 days on her fundraising efforts.

In 1996, the Novato Theater Restoration Committee purchased the property from the Bowman family, the theater's original owner, and spent eight fruitless years trying to raise money for renovations before ceding ownership to the city. During that time, the city also took on the $184,000 loan balance on the site and has been paying $2,250 monthly payments to the Bowman family.

Gerber said city officials were hopeful after previous false starts that the dilapidated site might finally be "activated into use as a vibrant downtown entertainment anchor that will attract the community to our downtown."

Athas returned to the common refrain of Baeza being a proven commodity capable of handling such a challenge.

"People often refer to downtown as 'the heart of the city'," she said. "Having a theater open will help that feeling and encourage more people to come. We do have something special here and we want to share it. I hope everyone stands behind Bernice and helps make this possibility a true, successful reality."