The Government is returning part of Christchurch's central business district to its original owners after deciding it is surplus to requirements for one of its anchor projects.
Some 1.7 hectares would be returned due to less land being required for the Performing Arts Precinct than planners initially thought would be necessary.
The Christchurch City Council has decided to repair the Town Hall, and many arts groups will be accommodated there instead of in the precinct.
A spokesperson for the Canterbury Earthquake Recovery Authority said negotiations are continuing with the Christchurch Symphony Orchestra and the Court Theatre over building replacement venues for them as part of a scaled back precinct.