The cinema, which opened in 1912, was built for the Bo'ness cinematography pioneer Louis Dickson and designed by renowned local architect Matthew Steele.
Constructed on a corner site, the Hippodrome consists of a circular auditorium with wrap-around gallery facing a proscenium and small stage.
The agreement made provision for the refurbished building to be transferred or leased to the creators of the preferred scheme on favourable terms in return for their speculative consultancy work.
Reinstating the cinema back to its former use and the creation of a community space was proposed by IDEAS, the Falkirk-based design firm.
The restoration work saved original features, including: cast iron radiators, oak panelling in the foyer area and art deco signs for toilets.