The Arts Centre has repeatedly threatened to make the council take over the financially beleaguered hub if it doesn't get more money, Christchurch mayor Phil Mauger says.
Now he wants information on what would happen if the council did just that.
The Arts Centre Trust has said it cannot survive without more funding.
The trust said it needed between $1.8 million and $2.2m more a year.
The Arts Centre is one year into three-year funding from the council to receive $110,000 a year for arts programmes.
Christchurch City Council on Tuesday was given an update on a financial report on the Arts Centre by Deloitte and council staff at a workshop.
The report showed that the Arts Centre needed more funding, but that it could also save money in some areas, Deloitte partner Scott McClay said.
One area it could save money in the short term was by deferring funding of depreciation for a couple of years, McClay said. That would reduce the amount of additional funding needed to about $900,000.
Mauger said the Arts Centre had consistently taken the narrowest view of its legislative responsibility possible, and chosen to minimise its duty to do things and to develop and maintain a sustainable and financially viable organisation.
The Arts Centre is governed by an act, which says it should foster, promote and facilitate interest and involvement in art, culture, creativity, the creative industries, and education.
"Given that context, if the court intervenes, wouldn't it be simpler for the court to find new trustees to implement a fuller understanding of the act, or if the council assumed ownership wouldn't one of our possible actions [be] to similarly just appoint new trustees who can do the job."
Council staff said they had been in discussions with the council lawyers, Buddle Finlay, in the event that the council did agree to take on the Arts Centre buildings. They were checking to see if the Arts Centre legislation would allow for council control, and how it would need to be structured.
In March, the Arts Centre Te Matatiki Toi Ora director Philip Aldridge said there was no alternative to dissolving the trust without council support.
"It's just a reality of the numbers. Without the grant, the directors of the trust would not have confidence, that we would be a going concern and the only option for them as directors would be to initiate the process of dissolving the trust. It's not meant to be a threat, but it's 'please, do you recognise that this is the only alternative?'."
Councillor Aaron Keown also asked staff to provide information on the option of taking control of the Arts Centre and combining its governance with the Canterbury Museum.
He asked if the Arts Centre could be funded as part of the Museum levy.
The Arts Centre Trustees will make a presentation to the Christchurch City Council on Thursday in a bid for more funding from the Long Term Plan.