Port Chalmers Foundry Trust members have been meeting Dunedin City Council staff regularly in recent months.
The building at the corner of Beach St and Macandrew Rd is a remnant of the once-thriving shipbuilding industry and, after the site is cleaned up and made safe, it is intended to be a multipurpose community centre or performance and visual arts space.
Concept plans for a proposed development were shared in confidence with council staff and have been presented for councillors to consider behind closed doors this week.
The relationship between the trust and council staff had grown in the past year, council staff said in a report for the public part of a meeting this week.
Trust secretary Kris Smith said discussions had been constructive.
However, a clean-up is required.
An assessment in 2019 identified asbestos, arsenic and other contaminants in the soil surrounding the building. Its roof was removed in 2017 and the council did not replace it.
The council seems set to foot the bill for decontamination of the site and stabilising a bank.
A high-level estimated cost for the work is $715,000.
The trust has previously argued the council has a responsibility to make the site safe.
It commissioned its own asbestos assessment last year and results have been shared with council staff.
The trust and council are expected to establish a memorandum of understanding, which would assist the trust to develop plans and its fundraising programme.
In their report, council staff referred to ‘‘another group’’ interested in developing the Sims building and site.
Staff said their concepts were similar and they had been encouraged to work together.
Ms Smith said trust members were happy to engage with other groups.
