CHAPEL HILL - The brand new owners of the Varsity Theatre hope popular flicks and date-night deals will reel in movie lovers again.

The Franklin Street landmark will reopen around Thanksgiving after extensive renovations to the lobby and concessions area and the addition of a children's party room.

Chapel Hill resident Susan Shareshian and her husband, Paul, finalized the deal last week and have already begun work to restore the theater.

"The Varsity still has a fantastic reputation, but we want to bring it back to the romantic era and make it more of a destination," Shareshian said.

The couple, who moved to the area from New Jersey four years ago, plan to charge $3 for tickets to all movies. They want to show mainstream flicks alongside generational classics like "Gone with the Wind" and "The Breakfast Club." They're planning to partner with restaurants for special date-night deals, too.

"We want to provide an economic evening out and still make it intimate," said Shareshian, 48, who works at Cisco. "We want people to want to dress up, even though they don't have to, because it is an event."

The 80-year-old theater, which played mostly art-house films in its most recent incarnation, closed in June after ticket sales plummeted. Bruce Stone, the former owner, declined to comment on the re-opening.

Shareshian and her husband, a software engineer, aren't worried.

"We did research for months, and we think if we show more mainstream films, we'll get more foot traffic, especially from the students," she said. "It was a challenge to run independent films in that community."

Other discount theaters, like the $1.50 Carmike Blue Ridge 14 Cinema in Raleigh, have seen steady interest on weeknights and weekends, especially from moviegoers who don't mind waiting a few weeks to see the latest films.

This is the Shareshians' first business venture.

"When we came down, we knew we were going to be here forever," she said. "We loved coming to the Varsity, and we knew this was the right thing for us to do."

In addition to regular movie showings, the theater will be available for rental for children's parties, private screenings, lectures and corporate functions. The couple also plans to host weekday senior matinees, family nights and summertime screenings for children.

"We want to make sure students have a space, but we want to make sure families, seniors, married couples all feel comfortable," Shareshian said.

Meg McGurk, assistant director for the Chapel Hill Downtown Partnership, said re-opening the theater will be a huge step in revitalizing Franklin Street.

"When the Varsity closed this summer, we lost a cultural destination," she said. "If it re-opens, it'll be a place that brings people to downtown."

McGurk said plans to include more programming for different age groups mesh well with the redevelopment of University Square, which intends to include more green spaces to attract families and children.

Shareshian, a mother of three, said she wants to show classic cartoons to a generation of kids who may have never seen animation outside of Pixar.

For its winter opening, Shareshian said she plans to show holiday films. Expect at least one screening of "Home Alone."

"Even in a bad economy, we think it's a great time to open something positive in a prime location," she said. "We're excited, and we have many ideas. We want everyone attending to view movies as an experience again."