The Regent Theatre has withdrawn its opposition to closing the Octagon for next week's All Blacks test in Dunedin.
Theatre management had earlier opposed the closure over concerns about the safety of patrons going to The Rocky Horror Picture Show film on the same night as the third test against Wales on Saturday.
Theatre representatives at a road stopping subcommittee on Friday instead called for better consultation and planning before future events.
After hearing from The Regent, bar owners and police, the subcommittee recommended the closure proceed.
Chairwoman Cr Kate Wilson said closing the Octagon would make the area safer for both bar patrons and theatre-goers, as it would create more room for people leaving the theatre.
"If it weren't to be closed, I think it would be a very unsafe environment for the Regent users [and] for the general public, given the number of people who will congregate there,'' Cr Wilson said.
As part of the recommendation, which will be voted on by the council tomorrow, the subcommittee asked staff to look at the council administering the use of public space for major events.
The Craic director Claire Grenfell was pleased with the recommendation, saying "common sense'' had prevailed.
However, she questioned The Regent's decision to raise its concerns in the way it did, which created uncertainty for bar owners.
Acting Sergeant Chris Lemon earlier told the hearing closing the Octagon was "essential'' to maintaining public order.
If it was not closed, police would use their powers under the Land Transport Management Act to close it, anyway.
Regent Theatre director Sarah Anderson and chairwoman Alison Cunningham both called for greater planning and more consultation with affected parties before future road closure decisions.
"Our decision to challenge this closure has been about the way decisions are made and how the city as a whole manages the implications of these major events,'' Ms Anderson said.
After the hearing, Ms Anderson said she did not regret challenging the closure.
The theatre was pleased with the recommendation council staff look at playing a facilitating role around future events.
