Dunedin City Council staff say the former theatre, at 231 Stuart St, has declined in importance and the council has no reason for retaining the deteriorated building.
Councillors will today consider whether to seek feedback on a proposal to sell the building and remove it from its strategic assets list, as part of its 2025-34 nine-year plan consultation process.
A staff report said the Heritage New Zealand Pouhere Taonga category-1 listed historic place was constructed for the former Trinity Methodist Church and opened in 1870.
It was used for professional theatre by the Fortune Theatre Trust between 1978 and 2018, before announcing its immediate closure when the operation became financially unsustainable.
The trust surrendered the lease to the council, which bought the building for $220,000 in 2000 and had been leasing it back to the trust, and has sat vacant in a "holding" state ever since.
The report to councillors said the building had deteriorated and improving it to a usable state would require a "high level" of financial input.
The cost to bring the main stage area of the building alone to a usable standard was estimated at between $100,000 and $150,000.
The building was also generating no revenue but still had an annual operating budget of $122,000.
Staff considered the property "surplus" to council’s requirements because it was no longer fit for purpose as a theatre, no longer contributed to the strategic goals of the council and had ongoing costs to maintain it.
"While the property was considered significant when operating as the Fortune Theatre, now that it is no longer used for this purpose the importance to Dunedin has declined and there is currently no identified future purpose for holding it."
"Disposing" of the property would be of financial benefit to the council, outweigh the costs of holding on to it and could allow the private sector to transform it into an asset "that Dunedin can be proud of."
"The property is well located, with a strong presence on the corner of Moray Pl and Stuart St," the report said.
"The heritage design elements of the building provide an instant iconic branding opportunity for businesses looking to create a truly unique experience in terms of food, entertainment, retail, accommodation, or commercial office."
Because of the building’s historic character, there could be a buyer who was able to capture the historic nature of the building for their own commercial or private use.
A building that was not being used naturally deteriorated, and the private sector was "potentially in the best position to reposition the property for the highest and best use in the Dunedin market," the report said.
