The timing of a proposal to build a "medium-sized" theatre in Dunedin, at a cost of up to $35 million, has been questioned by city councillors.
The project would see a 550 to 800-seat 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.
The theatre was the subject of several reports presented to the council's community development committee yesterday, which concluded the facility was both "necessary and feasible".
However, Cr Neil Collins was quick to question the cost of the proposed facility, given the current economic climate.
"Is it prudent to be even thinking in this direction at the moment?" He was concerned the council's approach to expenditure appeared to be "a little bit ad hoc", even with projects that had "huge figures" attached to them.
"This is just another one, which I don't believe the city or ratepayers can afford," he said.
Committee chairman Cr Paul Hudson agreed, saying he was "not convinced" the timing was right to proceed with the facility's development.
"We are absolutely stretched with what we are trying to do," he said.
"I'm not convinced . . . this is the right time for such a large level of expenditure."
However, Cr John Bezett said the need for such a theatre was "quite clear", and money was not - yet - the issue.
The committee had requested the reports, with a brief given to identify if a need for such a theatre existed, he said.
That had been established, but it was not yet time to pay for any facility.
"There is a need and I think that's great," he said.
"Where it goes is an entirely different issue and how it's paid for is an entirely different issue that will have to be looked at some time in the future."
As part of the report process, council staff asked independent arts management consultant Nicola Robb to examine the feasibility of a new theatre, while accountancy firm Deloitte detailed the approximate costs and revenues required to build on a "greenfield" site.
The reports concluded a medium-sized theatre was "essential" because Dunedin's existing facilities reinforced the perception of the city as a difficult place in which to perform.
Councillors eventually voted in favour of considering the project as part of next year's long-term council community plan hearings.
Financial partnership options would be explored in the meantime in an effort to reduce the council's contribution.
Theatre groups would also be approached to give their views on the facility's potential uses.
