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Dunedin city councillors have delayed a decision on whether to have an observer on a restructured Otago Theatre Trust board until they have further information about the new board and what rights the observer would have.
The trust operates the Regent Theatre and the council owns the building.
Following a report from staff on arrangements between the theatre and the council, councillors on the community development committee agreed an observer role would be pointless without the observer at least having speaking rights.
Councillors also noted they would receive a fuller report on options for future financial arrangements with the theatre after a review of civic grants and service-level agreements between the council and community groups using council facilities was completed later this year.
Both parties are keen to clarify roles and responsibilities for maintenance and meeting compliance requirements for the building.
The trust says it is unable to meet increased compliance costs for the building since a recent major upgrade of the theatre.
Councillors agreed to delay a decision on the council's role on the trust board until it had more details of the proposed board structure and reporting procedures.