Wellington councillors have voted for a second time to do a deal with Reading Cinema to get the Courtenay Place movies open once more.
The cinema, owed by a multinational company, closed in 2019 after seismic issues were found and has sat vacant on the capital’s main entertainment street since then.
Some locals see it as a symbol of the area’s downturn in popularity.
The council’s proposal hasn’t reached final agreement but 80% of the deal has been agreed, the council said.
The deal would see the council pay $32 million to buy the land from Reading Cinemas, who would then lease the land back from council and this money would cover the council’s borrowing cost. The investment would see Reading Cinemas upgrade the complex.
Details of the deal were only released publicly yesterday evening, with the proposal agreed to by councillors last October in private and some details then leaked to the media.
The investment would see Reading Cinema upgrade the building which has been shut since 2019. (Source: 1News)
Councillor Iona Pannett brought a notice of motion to revoke the deal at a council meeting today which failed, with a vote 9-7 against.
Pannett said property owners should go to the bank and the council cannot afford it.
“We’re being asked to sell the family silver… They’re getting a much better deal from my perspective than the city is,” she said.
“In my experience, multinationals aren't trustworthy business partners.”
In a public submission earlier today local philanthropist Sir Mark Dunajtschik offered to pay for the land in his own proposal.
Councillors were split on whether the deal should proceed.
“After the pipes, bringing the vibes back to the city is the biggest thing I am asked for,” Deputy Mayor Laurie Foon said.
Mayor Tory Whanau is also of the view reopening Reading Cinema will help bring life back to the entertainment precinct.
“If we don’t move this forward, we’ll look like we’re not about progress and I’m sorry, that’s not what I was elected to do,” she said.
The Mayor said fixing broken water pipes along with issues like housing can be addressed alongside the Reading investment.
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