"It's a matter of the two theatres working together on a way forward, and I believe they could work together in a shared space.
"It's happened all over the country, so I can't see why it won't work here," Mr Hall said.
District councillor and Creative Communities portfolio leader Glenys Searancke said the chances of both groups moving into the council's performing arts centre were slim due to size and accessibility reasons.
Rotorua Little Theatre president Grant Webb said members would meet next week to discuss their future.
He said both theatres could use a new home, but were not interested in a rented space in the council's performing arts centre.
"The ultimate would be two auditoriums in the one theatre, one for both societies, with us sharing other spaces like the reception, bar and kitchen.
"But this leads to other questions like how big would it have to be, how much it would cost and where it would be sited.
"Cost factor is a problem, but it's going to be hard to turn down the offer from the trust ... $1.5 million is a good start, but it won't build the whole thing.
"We are between a rock and a hard place.
"Ideally, we'd like to fix our theatre up, but having funding to build a new facility is great, and we do have to look to the future and where we will be in 10 years' time."
Mr Webb said some members did not like the shared theatre proposal, but it would be up to all members to decide on their future.
Rotorua Musical Theatre president Natasha Benfell said it was a tricky situation, but the benefits of sharing a theatre, for both organisations and the community, would be huge.
She said non-profit community groups that were run by volunteers could not afford to use the council's performing arts centre.
Locals have role to play in shaping centre's future
Rotorua Lakes Council is encouraging local people to have their say on the events and facilities they want to see at the Sir Howard Morrison Performing Arts Centre.
A steering group to redevelop the performing arts centre has been formed, with a proposed development concept plan available for viewing at the council's Ideas Store on Tutanekai St, and on the council website.
Council's Creative Communities portfolio leader, councillor Glenys Searancke, said there was potential for the performing arts centre to be transformed into a special place for the community to play, learn and perform.
"We want to hear what types of events and activities local people would like to see and be part of, and we want to ensure we have the right facilities to cater for those events - whether they're arts shows, acrobatics, children's concerts or whatever."
The council's performing arts director Richard Marshall said the council would like to see an increase in the use of the centre and was keen to engage with both existing and potential users, as well as other community groups, to get their feedback.
"Rotorua has a huge amount of talent that we'd love to see showcased at our performing arts centre," he said.
People can submit ideas at the Ideas Store, the Ideas Bank on the council website, www.rdc.govt.nz (under 'Creative Communities'), or by emailing richard.marshall@rdc. govt.nz. A 'Creative Email Sign-Up' has also been set-up on the council's Facebook page to keep people up-to-date with the creative community.
