In the draft 10-year plan, residents were asked whether they wanted a theatre built in the council’s preferred option of the Athenaeum or the alternative of the Mayfair Theatre.
However, councillors deferred making a decision until they consulted further.
Mayor Aaron Hawkins said submitters had not had the chance to consider the most recent report from the Charcoalblue feasibility study when they were responding to the 10-year plan.
The third phase of the report was released with yesterday’s meeting agenda and provided more detailed information on the council’s preferred option of the Athenaeum.
"Given the breadth of feedback that we’ve heard from our creative community ... I can’t see the merit in rushing to make that decision today," Mr Hawkins said.
He said he did not think the project would be delayed by seeking further feedback as work was not scheduled to begin on a theatre until 2025-26.
Cr Carmen Houlahan said she had "never seen the arts sector so disenfranchised as they are now".
She said the issue was causing a rift between the theatre industry and the live music industry.
"We’ve gone out here to do a good thing and it shouldn’t bring people apart, it should pull them together."
Cr Lee Vandervis said the arts community had already had enough opportunities to give their opinions.
"When we’ve already done everything you could possibly hope for by way of an extraordinarily expensive report, consultants, and a 10-year plan process.
"We are now in the position of either making a decision or walking away."
The motion to defer was carried 14 -1. Cr Vandervis was the sole dissenting voice.
The results of the 10-year plan submissions showed 53% in favour of the Athenaeum and 47% against, and 40% for the Mayfair Theatre with 60% against.
A further resolution to ring-fence $17.1million in the 10-year plan budget for future theatre development was also carried, by a 9-6 margin.
Voting against were Crs Vandervis, Sophie Barker, Mike Lord, Jim O’Malley, Jules Radich and Andrew Whiley.
Earlier in the meeting, Cr Vandervis had proposed an alternative to seeking further feedback.
He moved that the council should accept the gifting of the Mayfair Theatre and make more modest improvements over the next 10 years within a $15million budget.
Councillors had been told in a December 2020 meeting that a full refurbishment of the theatre would cost $31million.
The motion was defeated 4-11, with Crs Lord, Radich, Vandervis and Doug Hall voting in favour.