The Hamilton City Council has voted to demolish the Founders Theatre after a lengthy debate.
The building was closed due to safety concerns in 2016 and its future was very uncertain.
A last minute bid to save the building and turn it into a hub for community groups was made, but was rejected by nine councillors and supported by four.
Councillor Ewan Wilson told the meeting that it was an asset about to be destroyed and he warned councillors not to be quick with the wrecking ball.
Councillor Ryan Hamilton said the business case put up by the Toti Trust to save the building was underwhelming and laughable.
He said the trust had already been given a time extension to come up with names of financial backers it claimed it had.
Councillor Martin Gallagher said the city was desperate for community space and the theatre must be saved due to its historic nature.
Meanwhile, councillor Rob Pascoe described the Toti budget as weak and said it made ratepayers vulnerable if in time the council had to come to the rescue.
Councillor Dave Macpherson claimed the council had a pre-determined plan to get rid of the Founders Theatre.
An amendment allowing Toti more time to build its case to save Founders was defeated before the final vote supporting the recommendation to demolish the theatre was passed.
Earlier in the meeting the council heard that Toti had the backing of three prominent, wealthy families, the Gallaghers, Mowbrays and Ratcliffes, but no promise of funding from them had been made at this stage.
A move early in the debate to go straight to a vote was passed, but after a point of order and the mayor then seeking legal advice, it was rescinded and debate continued.
Gallagher said the move to end the debate was disgraceful.
The council said demolition, expected to cost around $1 million could begin within months.
The theatre site will become a park.
Late last year work began on an $80m performing arts theatre in central Hamilton.
Former mayor prepared to fight on
Head of the group fighting to save Founders and former mayor Margaret Evans was at today's council meeting.
She told Checkpoint people had indicated that they were willing to lie down in front of the bulldozers to prevent the theatre's demolition.
"The passions are pretty high but obviously we think it's time for more conversations ...We still think it's worthwhile fighting for this."
She said there was a shortage of space for community groups in Hamilton, in part because one centre has been closed down.
"We've been told that 30 or 40 groups are now looking for a place to have their discussions."
The Founders Theatre could be repurposed for expenditure of around $7 million to $10m.
"While the council gets other premises sorted out let's do this now."
Evans was unsure if the three families named would be willing to provide money, however, it was "a good sign" that they were willing to have their names in the public arena.
She said a business plan was presented to the council and the revamped theatre could be run by just one staff member and much more cheaply than if the council operated it.
She remains optimistic that Founders can still be saved.
"Councillors can always do a new vote. Until they bring the bulldozers in we have time to turn them around."