The owners of the art deco Piccadilly Cinema on Hay Street have plans to reopen, four years after the last remaining Perth city cinema closed its doors.

The much-loved cinema, which opened in 1938, stopped screening films in 2013 due to the owner's ill health.

It has been used as a retail space and kickboxing studio ever since.

But on Tuesday night the City of Perth council adopted two measures that would help the cinema's owners to renovate and reopen.

Since 2013 the old cinema space has been used for retail and kickboxing. ( ABC Radio Perth: Emma Wynne )

In a bid to revitalise the flagging fortunes of retailers in the CBD, the city will offer significant rate reductions to owners of underused heritage buildings if they reopen.

At the council meeting, the cinema's owners "applied for a credit under that scheme and that was unanimously approved", spokesman Terry Posma told ABC Radio Perth.

The owners are now planning a renovation which will turn the cinema, which was divided into three theatres in the 1970s, back into a single space that could seat 950 people.

Crowds of people flocked to films at the Piccadilly in 1951, but by 2013 it had closed for moviegoers. ( Supplied: State Library of Western Australia )

They are also in discussions with WA company Mellon Events which has expressed an interest in operating the theatre.

"Brad Mellon is very interested in taking on the lease of the theatre," Mr Posma said.

"The way they are looking at the theatre, it could be used for not only music but also live stage plays.

"Maybe 18 months from now we could be seeing concerts at the Piccadilly again."

Awe-inspiring art deco space was talk of the town

The Piccadilly cinema and arcade, which runs between Hay and Murray streets, was built in 1938 by notorious Perth businessman Claude de Bernales.

It was the first cinema in Perth to have air conditioning.

"It was the talk of the town when it opened in March 1938 by the then premier Sir James Mitchell," Richard Offen, executive director of Heritage Perth, explained.

"Claude de Bernales was a mining magnate and entrepreneur and he left a lot of people without their money.

"He ended his life under house arrest in England, but he built this wonderful art deco arcade and cinema.

"The theme of the whole arcade was roses."

Stardust memories

For many people in Perth, the cinema holds happy memories from their childhood.

Talkback caller Ben recalled visiting with his grandmother.

"What I remember was that you had to stand for the anthem at the start of the movie," he said.

"We watched The Poseidon Adventure which as a young child was quite extraordinary. I remember the theatre being quite awe-inspiring as well.

"That was her favourite theatre and she used to go once a week to see the movies that were on at that time."

Children crowd around to see coming attractions at the Piccadilly Cinema in 1967. ( Supplied: State Library of Western Australia )

"The year was 1968 and I saw The Graduate there with my boyfriend at the time who became my husband," Trish recalled.

"My boyfriend did look a bit like Dustin Hoffman and I fell in love with Dustin Hoffman."

"I went to see Tommy [The Who] with my aunt when I was about 10," Gaye said.