CEO theatre manager Janice Marthen said the Dunedin City Council-owned building was extremely damp, which caused plaster to bubble, mould and mushrooms to grow, and a strong odour to fill the interior when the weather was particularly wet outside.
"In the office, you literally can't put paper on the floor because it just gets wet. When you put it in the photocopier or printer, it steams.
"Being a tenant here is sort of like putting a Band-Aid on an open wound - but the wound never heals."
Maintenance was costing about $12,000 a year, but it did not seem to permanently fix the problems.
It was money that could be better spent elsewhere, she said.
Another issue was access to the building, she said.
"It's very poor. If you had any disability, you couldn't get down the stairs to the toilets.
"It is nearly 2010 - anyone with a disability should have welcome access to any building in Dunedin."
Mrs Marthen said the most common complaints about the theatre were the lack of heating, air conditioning and accessibility of the toilets - there are only two female toilets for a theatre which seats more than 230 people.
Fortune Theatre Trust chairman Robert Aitken said the general feeling among the theatre's members was the building was no longer suitable for their operations.
He hoped an independent review funded by Creative New Zealand, due to take place early next year, would determine whether the Fortune was operating in the best way possible.
"If we want to expand our audience, we need better facilities. This review may suggest we find a new building."
Dr Aitken said the theatre had been struggling with poor cash flow during the past few years.
However, it was expected to post a surplus in 2010 after paying off a major debt this year.
"We would struggle financially if it weren't for one or two well-attended shows this year."
For the theatre to attract more consistent audiences, Dr Aitken said it was important to create "a positive experience" for those attending shows.
This would create a better cash flow.
"We've got enough money to run the place, but it comes in at different times."
Dr Aitken said the review would be completed by April next year, and once the new direction of the theatre had been identified, permanent staff would be appointed to suit.
