The Cedar Lee is the theater in Cleveland that gets all those limited release films. It's not really art films; it's those sort that border on mainstream and are usually really good. Like "The Hours", "Sideways", or "Closer". (Sometimes they carry "normal" movies too. It all depends.)
I've seen a handful of movies here and have always been impressed. (Except the time I saw "From Justin to Kelly". Yuck.) The individual screening rooms (is that what you call them?) are large and the chairs comfortable; the sound and picture leave nothing to be desired.
Movies are usually sparsely attended, which is good for an attendee but maybe bad for sales. Regardless, the theater seems to manage.
The other reason that this theater is a personal favorite is that they still have Rocky Horror showings, on the first Saturday of each month at midnight. (Line up Saturday at 11:30pm.) The local troupe is great, and it's always fun.
Check the schedule here for relatively rare, exotic, and always interesting films.