The 99-year-old theatre was closed last year when engineers discovered it was earthquake-prone. Hastings District Council is planning to consult with the public before committing to the multi-million dollar cost of strengthening the historic complex, which includes the neighbouring Municipal Building.
Mr Yule said seismic compliance was a significant issue for Hawke's Bay commercial property owners, who needed to face up to it now the Government had confirmed the rules were not changing in the region.
"Up until now, a lot of landlords have been too scared to find out. A lot of owners haven't done earthquake testing assessments," he said.
"I see no merit in them delaying that, because it will either confirm they've got an earthquake-prone building or they haven't, and they've now effectively got 15 years to fix it. I think they are better off to know, rather than try to ignore it, because it's clear the Government is not going to allow people to ignore it."
Napier Mayor Bill Dalton agreed the issue was a major one for building owners who were required bring their buildings up to code if, for example, a tenancy change saw the usage of the building change.
"The legislation needs more clarification on where boundaries are and who is involved," he said. "The legislation needs to have a complete review."