The car park on St Catherine's Road forms part of the development site which will include five cinema screens, restaurants and office space - all a short walk away from St Peter's Hill.
SKDC's Cabinet last week agreed a new three-hour £1 leisure tarrif for motorists who are being encouraged to use the nearby Welham Street multi-storey car park which is visible from the St Catherine's Road car park.
SKDC's Cabinet Member for Major Projects Cllr Jacky Smith confirmed the new tariff will be introduced once the cinema is built in late 2018 or early 2019.
She said: "Starting at just £1 for three hours, it shows we are choosing to generate slightly less income in favour of increasing the overall number of visitors to Grantham.
"The new proposed charges will encourage anyone wishing to take in a film, have a bite to eat at one of the new or existing restaurants in the town centre or pay a visit to a show at the Guildhall Arts Centre, with a great value parking rate.
"This is subject to the outcome of a consultation exercise and being passed at full council.
"There is also plenty of other parking within walking distance of the new development that is free after 6pm each evening."
"We are confident that the Welham Street Car Park has enough capacity to deal with additional demand - most of which is in the evenings and at weekends.
"We have looked at how the development of a similar cinema complex in another comparable town has affected car parking, and using data from their ticketing, we have created a model of predicted usage levels.
"It showed that 25% of activity connected with the cinema was in the daytime and the remaining 75% was in the evenings. So peak daytime car park use will not coincide with peak use generated by the cinema.
"The benefits of the new cinema complex will, we believe, far outweigh any parking adjustments required to accommodate the development."