Dunedin council to consult on proposal to sell former Fortune Theatre building

The Dunedin City Council will go out for consultation on a proposal to sell a historically significant, but vacant building that is costing $122,000 a year to maintain.

The former Fortune Theatre at 231 Stuart Street has been closed since 2018 when it was deemed not financially sustainable.

The council-owned building is protected under its Heritage Category 1 status but it has suffered water and moisture damage that led to the removal of some flooring, wall lining and stairs.

In a report tabled at Monday's council meeting, staff said the building was no longer fit for purpose, did not bring in income, and would need "major" investment to bring it up to a useable standard.

"A disposal could allow the private sector to transform the property into an asset that Dunedin can be proud of," the report said.

"The property is well located, with a strong presence on the corner of Moray Place and Stuart Street. The heritage design elements of the building provide an instant iconic branding opportunity for businesses looking to create a truly unique experience in terms of food, entertainment, retail, accommodation, or commercial office."

Councillors voted to seek public feedback on whether to sell the property during its Nine Year Plan consultation.

Councillor Lee Vandervis - who was the sole opposing vote - said it was not unsafe when he worked at the Fortune Theatre.

If the council considered selling it, there was no way to guarantee it would not get demolished, he said.

Councillor Brent Weatherall said it was a financial liability for the council.

"We need to stop the rot and sell this property to give the property the love it deserves. Since the closure of the theatre in 2018, it's cost the city around three quarters of a million dollars to sit idle," he said.

Deputy Mayor Cherry Lucas said she thought how wonderful it would be for someone else to take ownership of the building every day she drove past it.

"I think our staff have done a wonderful job in ensuring that it is dry and it is well maintained. But it is costing us a significant amount of money and council is not in a position to be able to afford to restore it to its former glory," she said.

Councillor Carmen Houlihan said there was an opportunity for someone who had the skills to restore the iconic building.

Councillor Kevin Gilbert said he had fond memories of the building, but he would love to have a cafe in there.

Councillor Christine Garey said the time had come to figure out what to with the building and consulting the community gave them that opportunity.

"Let's see where it takes us," she said.

Councillors also voted to consult on whether to remove the building from part of its Significance and Engagement Policy as it no longer fit the criteria and was not used as a theatre anymore.