LYNNWOOD — Years ago, residents would hop over to the Lynn-Twin movie theater for the latest films.

The independent theater, near Highway 99’s intersection with 196th Street Southwest, was the place to see movies for decades.

In 1984, its owners built the Grand Cinemas Alderwood off of Alderwood Mall Boulevard. In 2006, they sold that property to Kohl’s Department store.

Now, the owner of the former Lynn-Twin theater is negotiating with The Home Depot, which may open its first Lynnwood store on the former theater site in 2008.

“We have been in discussions with Home Depot, but there’s no guarantee that it’s a done deal,” said Will Daniels, who manages seven acres of commercial property for Sterling Real Estate Organization, the property owner.

Sterling’s holdings along the busy block include a mishmash of independent, single-story businesses on the west side of the highway. There’s a couple of furniture stores, a vacated espresso stand and a computer store. Not far away, a Pizza Hut churns out its fare.

For months, business owners have been on month-to-month rent agreements with SRO, which has been actively searching for a large-scale tenant for the property since 2006.

In March, longtime restaurant Jimbo’s closed its doors.

The restaurant’s owner, George Ageladaris, told the Enterprise he needed a year-long lease agreement in order to plan needed improvements.

Sterling Real Estate Organization owns the site of its former movie theaters, a sprawling warehouse and offices that, until 2004, were used by the international relief agency World Concern.

Daniels’ company isn’t the only developer with an interest in redevelopment. Pacific Coast Properties, owners of the nearby James Square shopping center, owns property on the corner.

Pacific Coast Properties did not respond to Enterprise requests for an interview.

Kathryn Gallagher, spokeswoman for The Home Depot, said via e-mail, “We have interest in expanding our presence in the Greater Seattle market and are considering all viable sites that fit within our existing store network.”

Larry Maland, owner of SureYouCan! computer training, 19714 Highway 99, said he’s on a month-to-month rent agreement as well and is searching for a place to move.

“When my landlord sold to SRO, it was known for some time that there was going to be some development of the block,” said Maland, who’s owned the computer store since 1999. “I’m actually looking for a good place to locate where I’m not too far from our legacy customers in Lynnwood and Edmonds.”

Jon Haskins, owner of J&L Pre-Owned Office Furniture next door, will close the store he’s run since 2005 and retire by the end of the year. After 30 years in the furniture business, he said, “I’m off to Hawaii.”

The block’s changed businesses a few times since 1990.

Gone are Jimbo’s and The Corner Tavern.

Jeff Conwell, an All-State Insurance agent, occupied space within a 15-foot by 15-foot wood hut — one of two behind Jimbos — before relocating a block away last year. He said he’d been told the huts were part of the 1962 Seattle World’s Fair.

“We tried to extend our lease last summer and the landlord wouldn’t do it,” Conwell said. “We didn’t want to have a ‘gun’ to our head, so we moved.”

For years, Maland’s site was home to a business that specialized in reselling used Levi’s.

Maland said he remembers the Levi’s shop because it was a big, yellow building with a blue jeans mural on its outside wall that read “Wanted: Levi’s.”

“When I bought, I thought ‘Wow, I can put a big mural on this wall,’” Maland said. But city officials said no.

A former restaurant further north along 99 was converted into a smoke shop. Maland said he sometimes wonders whether he could make more money by opening a smoke shop.

“Somehow, I don’t think I’d find that intellectually challenging,” he said.