A Downtown movie theatre would be a great draw for Huntsville. Even a small theatre would encourage foot traffic and "date/family nights" in the heart of the city. As a bonus, design the theatre to have an "old time" look and feel (at least on the exterior.) Retro is the new cool. So, maybe make it a throw-back to the classic theatres that once existed here?
And for those saying, "Oh, only private industry can bring that in." I disagree. The city can and should actively recruit a movie theatre (Monaco's owner perhaps?) to be the "anchor" of a new mixed-use development like what will likely go in at the old Holiday Inn site.