They could do a multi-level building with parking on the bottom floors and theaters above.
However, the location seems crazy. You'd probably have decent foot traffic in the winter and spring from the university. However, the university would be mostly empty during the big summer movie season. You can put a nice big sign on the building facing I-94, but there is no easy way to get to the theater from that freeway. You'd have to get off at John R or Beaubien and snake your way through side-streets. From the Lodge you can get off at Grand Boulevard and that wouldn't be bad.
A location over by Woodward would make more sense.
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