Council staff recommend sale of former theatre site

A heritage building that used to house a professional theatre company in Dunedin should be sold, city council staff say.

Preparing the property at 231 Stuart St for sale is the option recommended by Dunedin City Council staff ahead of a decision by councillors next week.

The other options in a report for the council are to continue to hold on to the property in its existing state or establish a community use for it.

Retaining the building — formerly occupied by the Fortune Theatre — in its existing, vacant state was viewed by staff as not financially sustainable and risked deterioration of the asset, they said.

Establishing some form of community use was not ruled out, but was also considered to carry significant costs, as extensive work would be needed to get the building ready for a tenant.

A quantity surveyor estimated this at $2.4million, including contingency. Particular fit-out requirements, such as for a theatre or office space, and any professional fees would be on top of this.

The Fortune Theatre company was based in the former Trinity Methodist Church for 40 years until its 2018 closure because of financial difficulties.

The building has since been vacant and the property has an annual operating budget of $122,000 for rates, electricity, insurance, depreciation and maintenance, including ventilation and use of dehumidifiers to prevent mould growth.

Urgent repairs had been made where necessary and emergency systems were functioning, but getting the property to "a basic tenantable state" and dealing with building compliance issues would require "extensive" improvements, staff said.

Capital costs for upgrading the building for potential community use might add up to $3m-$4m, funded by debt, staff said.

The report for councillors said the property’s location held potential for "a wide range of activities, including commercial, recreational, residential, community support, large-scale retail, licensed premises and commercial residential activity".

A recent valuation had been received from Colliers and this was part of the public-excluded part of the meeting’s agenda.

The building opened in 1870 and is listed by Heritage New Zealand Pouhere Taonga as a category 1 historic place.

The former church’s "entire external building envelope" is also subject to heritage protection under the city council’s district plan.

Councillors decided in May the property should no longer be on a council strategic assets list, opening the door to a possible sale.

However, they also sought information about other possibilities, including those advanced by people who made submissions about the council’s 2025-34 long-term plan.

Dunedin theatre practitioner Karen Trebilcock said a profitable professional theatre could operate there and her proposal should be given due consideration.

Material in the council’s agenda was "counter to what has been supplied to me" by its building services unit, she said.

Council acting chief executive Robert West said whenever Ms Trebilcock had asked for information to be circulated, it had been.

"We dispute any suggestion staff advice is one-sided, or that information has been withheld."

The council’s report had a long list of improvements that would likely be needed to get the building ready for tenants.

This included installation of a passenger lift, roof and spouting repairs, electrical and plumbing work and improvements to heating and ventilation.