Reuse of the sign is part of an effort to salvage elements of the theater, which fell short of being designated a historic site in 1979, but effuses nostalgic connections with some longtime residents and visitors, a few of whom still hold out hope of saving and restoring the building.

Conceptual plans for the roughly $7 million retail development were publicized early last year, and have evolved since. Expected tenants include Foot Locker, Whaler's General Store, California Pizza Kitchen, a steak and seafood restaurant, 80 kiosks and maybe a beverage/snack shop.

Demolition of the theater is expected to begin in the next few months, after an October public hearing and city Planning and Permitting Department ruling on the retail building's latest design.

"We don't want (the new building) to look like a theater, because it's not," said Bill Brizee, a principal with project design firm Architects Hawaii Ltd. "But we want to celebrate the theater, because tearing it down is very emotional for people."

Technically, the sign, which would be illegal under today's building code, won't be a sign, but a kind of historical marker, Brizee said.

The city encouraged the sign's reuse on the new building, and in June had expressed displeasure with the retail project's initial architectural plan that largely ignored the theater's significance.

A city design advisory committee said initial plans for the new building didn't reflect theater attributes that made it one of Waikiki's most significant sites, and recommended the project do more to reflect the theater's distinctive elements.

The project's latest design reduced the building from three to two stories, would display historical theater photos along an escalator ride to second-floor restaurants, reuse decorative grills on the exterior facade, and feature movie-themed artwork along the Duke's Lane side of the building.

"We're trying to replicate the architecture without mimicking the theater," Brizee said. "We are reusing as many elements as we can. We haven't found a place for the (interior) leather doors, but we are considering them for a couple of different places."

Project developer and Consolidated Theatres affiliate Robertson Properties Group would not provide an artist's rendition of the building, but presented renderings to a neighborhood board meeting last month and filed copies with the city.

Jim Poole, a Waikiki resident and Honolulu Community College computer science associate professor, commended the design changes. "The original design was kind of this bland thing," he said. "I wanted the architecture to steer away from 2100 Kalakaua and Nike Town."

Poole said the redesign, which he's seen, "put the nostalgia back in" the building, and communicates more of a Hawaiian sense of place.

But others aren't pleased with the redevelopment, preferring the theater be preserved. "It's great having commerce and stores, but I feel recreation-wise we've lost so much," said Waikiki resident and retiree Lehua Sureda.

Sureda said she isn't saddened by the absence of a movie theater in Waikiki, but she mourns the loss of a venerable establishment. "I feel strongly about keeping our heritage alive," she said.

For many years, Waikiki's premier theater welcomed guests to a tropical art deco-style movie hall with a lanai water fountain, interior faux palm and banana trees, live organ music and a star- and cloud-filled ceiling.

Makiki resident and actor "KeAloha" Rod Aiu said he would like to see the property preserved and used for live theater.

In his effort, Aiu is trying to contest Robertson Properties' ownership of the property or raise money to purchase the site. He also started a petition to block demolition, and said he has hundreds of supporters.