An agreement to restore the Oriental Bay Band Rotunda has been terminated, with Wellington City Council looking at other options.
The council-owned landmark has stood empty for more than a decade. It is earthquake prone and requires significant strengthening work.
Strengthening work began in 2021 after Wellington City Council signed a long-term lease with the construction firm McKee Fehl and its sister company Cheops Holdings, which specialises in developing historic buildings.
But RNZ reported in January that nothing had happened on the site for more than a year.
At the time, Cheops Holdings managing director Maurice Clark said that was because they had not found a restaurateur willing to take it on.
Wellington City Council said it and Clark mutually agreed to terminate the development agreement and lease for the rotunda.
"Council is now in discussions with other parties with regards to developing the site. Further details are currently unavailable due to the commercially sensitive nature of these discussions."
Clark said although the decision to end the agreement was mutual, he was "disappointed" as they had been making some progress on finding a tenant and investor for the rotunda, and had "strong interest" when the council decided to cancel.
Lambton Ward councillor Iona Pannett was also disappointed the agreement had been scrapped, and wanted to see to council go back and negotiate a new agreement with Clark.
"Maurice is one of the best heritage developers in the country. He's done some amazing work and really he probably just needed a bit more time because it's such a tricky site," she said.
Pannett said the issues with the rotunda also highlighted the need for reform to the building act.
"We do need a pragmatic way forward on costs around strengthening earthquake prone buildings."