Hamilton City Council has given a community trust an extra three months to submit a proposal outlining an alternative future for the site of Founders Theatre.
The building, which opened in 1962, was closed in 2016 due to significant safety concerns. The building has also been identified as earthquake prone with estimates for restoration ranging from $12 million to $20 million.
Council has consulted with the community three times since the building's closure, with 84 per cent of submitters supporting the council's proposal to create a multipurpose park on the site.
In the 2021-31 long-term plan, $3.6 million was budgeted to demolish the building and build the new multipurpose park.
In May, the Theatre of the Impossible Trust (TOTI), a charitable trust petitioning to restore the site, was given until December 31 to provide an alternative business proposal for the site.