Charcoalblue consultant Erin Shepherd discussed a report on performing arts in the city with Dunedin city councillors on Tuesday, along with council Ara Toi (arts and culture) group manager Nick Dixon.
She told councillors the closure of the Fortune Theatre had been ''death by a thousand cuts''.
A $300,000 performing arts feasibility study was commissioned following the closure of the theatre last year, and the first phase was now complete.
Mr Dixon said in answer to a suggestion from Cr Lee Vandervis that Sammy's might make a ''much better venue'', that the second phase of the study was about to start.
It would involve looking at an array of potential venues around the city.
An architect would rigorously appraise Sammy's and other sites for their suitability.
It was unlikely the former Fortune Theatre building in Stuart St would be considered suitable, Mr Dixon said.
Ms Shepherd said the consultants would probably be looking at a mid-sized theatre, a ''flexible, black box-type space'' which could seat between 300 and 500 people with additional spaces that could potentially support that.
''We are talking about making spaces for rehearsal, workshops, things like that.''
The team of consultants together with architects would be putting together a functional brief for a ''hub'' in the coming weeks.
A black box, or experiential theatre, was usually a square room with black walls and a flat floor.
Mr Dixon said in answer to a question from Cr Vandervis that the repertory society model used in the United Kingdom - which the Fortune Theatre company had been modelled on - was only really suitable in a country which had the West End, and a good public transport system.
In Australasia, it had ''progressively ceased'' to be a model that worked.
''There's a variety of factors behind the demise of the Fortune,'' he said.
