The city council is busy negotiating with an insurer again - this time over the town hall.

A $20 million renovation project, including upgrade of bars and the James Hay Theatre, was underway when the earthquakes struck.

Work to the value of $2.8 million had been completed before the town hall was damaged in the September 4 and Boxing Day, 2010 earthquakes, and finally destroyed in the February 22, 2011.

The city council's insurance claim is for a part of the $2.8 million for work paid for but not actually completed, general manager finance and commercial Peter Gudsell said.


Members of the insurance subcommittee, comprised of Mayor Lianne Dalziel, Deputy Mayor Vicki Buck, Cr Andrew Turner and Cr Raf Manji, discussed the problems with progressing the claim behind closed doors earlier this month.

What was discussed is not expected to be released for at least 10 years due to "legal privilege".

Cr Buck told The Star it was a "pretty minor" issue.

It is not expected to affect the $127.5 million rebuild currently underway.

The city council was embroiled in insurance negotiations with the re-insurers of Civic Assurance and the Local Authority Protection Programme for about four years, finally receiving a global settlement of $635 million in December.