Holdfast Bay Council has voted to help fund a proposed cinema complex off Jetty Road at Glenelg.

Developer Andrew Taplin wants to build a $20 million theatre with seven screens on council land in Partridge Street.

The council has agreed to contribute $2.5 million for car parking.

Councillor Tim Looker says a new cinema will have a positive impact on Glenelg.

"It's generating a lot of interest. The restaurants and cafes nearby will be reinvigorated, there'll be life, there'll be movement and there'll be people moving around," he said.

"It will be a winter time activity as well. People go to the cinema ... on those cold winter days and that will bring people down to the area."

Mayor Ken Rollond says strong support was evident as the council considered its position.

"There was quite a large gallery, obviously very much in favour of the proposal and the majority of councillors felt that whatever this cost the community it was certainly worth it," he said.

He has high hopes of a long-term boost for the area.

"Initially I feel very sure it will be popular. It's a matter of whether in four or five years' time the same popularity exists because the previous cinema certainly didn't have very good patronage," he said.

The old cinema in Jetty Road was demolished despite a long campaign by some in the community to save it.