"One party is obviously not happy with the other party, so I presume they've decided they should make it public."
But Milford said it didn't surprise him to see points that still need negotiating.
"This is a commercial contract, with the council making an investment on behalf of ratepayers for the future.
"So on that basis there is going to be negotiation backwards and forwards.
"There's always two sides to any conversation and this is a landlord/tenant conversation around agreeing terms for a relationship that is going to go for a number of years."
Milford said the key for the city and ratepayers is that they get the very best outcome.
And he said this conversation is not just about the movie museum.
"We are desperately missing having a conference centre at the moment because of the Town Hall being out of commission.
"And with Christchurch and Auckland expanding their facilities, we need to secure the conference facility as well - not just the movie museum."
The Wellington City Council has refused to comment on reports Sir Peter Jackson is threatening to pull the plug on the capital's $150 million Movie Museum.
Councillors have described Sir Peter's message a "divorce letter", according to Fairfax.
but a report this morning claims that relationship could be on rocky ground after Sir Peter sent an angry letter to the council.Councillors have described it as a "divorce letter", according to Fairfax.Fairfax reports Jackson sent the letter out of anger over how the council has been managing the museum plans."WCC seem intent on reneging on many of the terms already agreed in the November 2015 signed contract," he wrote in the leaked letter, Fairfax said."This is the principal cause of ongoing delays, and it feels that WCC are attempting to sabotage the project. We hope this is not the case and common sense can be allowed to return to process."The signed agreement says council would pay for the building while The Movie Museum Ltd (TMML) would cover costs for fitting out the museum.The collection would include much of Jackson's movie memorabilia.Jackson's letter raised questions over whether council understood the level of TMML's investment, and said it was no longer in a collaborative partnership, Fairfax said.The letter also said an update on the development agreement was also concerning and there was "no way" TMML would agree."Given the level of our investment … we simply cannot move forward in the manner which is outlined in the current agreements."The letter also claims Jackson and TMML are not receiving any assurances on maintenance, the longevity of the project, or the termination of a lease."We cannot commit to the level of fitout required to build a world-class movie museum without any assurance around our 25-year lease."TMML should be able to end its lease two years into the project if business conditions were not going well, the letter said.There were 55 matters he wanted resolved, which he outlined in the letter.Council chief executive Kevin Lavery said the council would not be commenting, other than to say they're disappointed the spat is playing out in public.He said the council was keen to talk to Sir Peter and his representatives about their concerns.