Christ Church Cathedral Reinstatement Ltd, the charitable organisation managing the rebuild, received $3 million from the city council in December last year with another $7 million set to be paid out on August 1.
But, if the restoration of the iconic church is halted, the city council may keep the $7 million grant.
In April, CCRL announced the cost of restoring the cathedral had risen from $160 million to $248 million. CCRL said unless $30 million can be found by August 31, the rebuild could be put on hold.
At a Long Term Plan workshop last week, councillor Sara Templeton said the 2017 city council resolution to contribute to the cathedral restoration stated the money must be applied to the rebuild.
"The funds could not be applied to a mothballed process because that is not a rebuild."
City council community support and partnerships head John Filsell said the $7 million would only be paid out if it was spent on the capital cost of the restoration.
Council staff are investigating the conditions of the 2017 resolution, and the city council will discuss it before August.
- By Geoff Sloan, made with the support of NZ On Air
