A report late last year proposed a theatre built at a cost of between $17 million and $35 million, depending on the final size, with annual operating costs of up to $500,000.
At the budget hearings yesterday, deputy mayor Syd Brown moved the report be noted, but no further action taken within the long-term council community plan.
He said there was no clear argument there was demand for it, and the capital budget was already full.
Cr Richard Walls agreed, but said it should be considered when a report on the future of the Mayfair Theatre was finished, expected to be some time next month.
But Mayor Peter Chin said he could not support Cr Brown's motion, when the Mayfair Theatre report was coming, and a lot of work had gone into the report.
Cr Brown's motion would mean the work was ignored.
"That is something I don't think is right."
Mr Chin said a community discussion on the matter was needed.
Cr Bezett supported him, and said the council was morally bound to consider the report.
Chief executive Jim Harland joined the debate, and said he was "uncomfortable" with the report, as it did not deal with the demand side of the theatre issue.
He said even if the theatre was not included in the annual plan, the public could still bring it up during consultation on the annual plan in May.
The meeting voted 9-6 for Cr Brown's motion.
Cr Hudson then moved $20,000 be included in the budget for further work to be done on the feasibility of a theatre.
That motion was carried, when Mr Chin used his extra vote after a 7-7 split.
