DPR Construction had sought permission for 24-hour construction on the project for five months--an unusual request due to its length, safety issues and noise from steel construction.

After much debate, the council voted 4-0, with Councilman Orrin Mahoney absent, for the project so long as a long list of conditions was met.

As a part of approving the project, the city council also agreed to a different schedule than the one proposed by DPR. The new schedule allows for construction Monday through Saturday, with steel construction to take place only after the mall is closed (from 10 p.m. to 6 a.m.). The project is to begin Jan. 17 and conclude May 31.

Other conditions include maintaining noise levels at the current level of roughly 60 decibels, hiring a noise consultant to monitor ambient noise, establishing a hotline to register noise complaints, providing monthly reports to residents living within 1,000 feet of Vallco and having Vallco officials deposit $50,000 with the city to pay for any penalties.

According to Carol Atwood, project managers would have a short period to fix problems that occur before penalties of $5,000 would be assessed.

DPR plans to tear out the center out of the mall and install escalators leading to the theaters, which would be on what is now the roof. Equipment for the project is to be placed on Wolfe Road.

Atwood said the fast-paced schedule is necessary due to commitments between Vallco and the AMC Theater chain. Vallco has committed to completing the 16-screen theater at the top of the mall by November, just before the start of the holiday shopping season.

"There are many economic threads," Atwood said of the timeline. AMC can pull out of the deal, for instance, if the theater complex is not built by November. If that happens, other anchor stores planned for the mall could then rescind on their commitments.

All of this is part of a larger plan to revitalize Vallco and the city's sales tax base. Sales taxes in Cupertino, which provide a third of the city's general fund, have declined in recent years. In 2005, some sales taxes have increased in the high-tech sector, but the retail sector continues to struggle.

The movie theater complex is seen as a key to changing that trend.

"The theaters will generate about $2,000 in sales tax per screen from concessions," Atwood said. "But the theaters will bring in about 1.5 million customers and they will produce sales tax at the shops and bookstores. The hope is to bring Vallco to the level of Oak Ridge Mall [in San Jose] and generates about $4.2 million in sales taxes."