A phoenix palm is threatening the financial viability of the Pah Homestead in Auckland, the permanent home of the Sir James Wallace art collection.
The $50 million art collection went on show at the TSB Wallace Arts Centre in 2010 following a $6.7 million refurbishment of the Hillsborough homestead by the former Auckland City Council overseen by then mayor John Banks.
The protected palm tree is in the middle of a proposed site for a marquee meant to generate income from functions and catering for the James Wallace Arts Trust.
Auckland Council's arts, culture and events committee today heard that the palm, which both the Historic Places Trust and the council's heritage department have insisted be retained, is compromising the viability of the functions business.
It was envisaged the marquee could generate a sustainable income for the trust by 2015, the same year a council grant of $150,000 for the arts programme ends.
A council manager, Richard McWha, says the biggest issue facing the trust and the council is the long-term financial sustainability of the centre.
Committee member Christine Fletcher said she was very proud of the facility and looked forward to a sustainable business model.
Mrs Fletcher could not understand how the council could be so "pig headed"about keeping the phoenix palm.
She said the parks, community and lifestyle budget -- which the Pah Homestead falls under -- was faced with a proposed 40 per cent capital spending cut in the new 10-year budget.
The committee requested officers to explore options that excluded general admission charges for a more sustainable model in the medium term.
The committee also heard from James Wilson, the chief executive of Q Theatre, who updated councillors on the theatre, which he said had become a magnet for the performing arts since opening in September 2010.
Mr Wilson said the theatre was in a good financial position and benefiting from an innovative and buzzing performing arts sector.
The flexible arts venue cost $21 million to build, including $9.6 million from ratepayers. In the past year it hosted 538 individual public performances.
The committee went behind closed doors to hear about commercial opportunities, including new venue charges, for the theatre.
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