Dr Smith's submission to the Waitaki District Council's 2018-28 draft long-term plan, on the second of two days of hearings, called for greater financial assistance for the trust.
And under questioning, he said a loan of $500,000 would serve the trust better than debt relief.
Earlier this month Waitaki Mayor Gary Kircher, a council representative on the trust, said without increased funding for the trust, historic Harbour St could lose its character.
Initially, an interest-free loan of $100,000 was made to the trust to upgrade the historic buildings it owns. Later, a loan of up to $500,000, of which the trust had drawn down $440,000, had been extended.
Dr Smith said due to the ''father and son''-type relationship between the council and the trust, where the trust did not feel the weight from debt as it otherwise might, the trust would be able to capitalise on the loan.
The council pays the interest on the trust's loan, but Dr Smith said a further loan would better the trust's ability to pay back both loans.
Further, he offered, on behalf of the trust, the Loan and Merc building in Harbour St ''for any future cultural facility''.
In March, the council backed away from seven-year-old $6 million redevelopment plans for the Forrester Gallery in Thames St. The apparent end to plans to combine the Waitaki District Archives, the North Otago Museum and the Forrester Gallery in the Thames St site left many in the community disappointed.
Also, in March the council nixed at least the first year of a proposed new council position of heritage adviser.
Dr Smith said the trust had ''de facto'' taken on that kind of role.
Rather than be spread too thin, a new heritage adviser could take on a role more appropriate to council.
He could focus on ''doing a few things well'' and offer ''material help''.
The benefit of a new council position would be to ''guide developers through the regulatory framework''.
