Consent to demolish the category 2 listed heritage building, the Club Hotel in Gore St, was denied by the Invercargill City Council in May.
Members were disappointed at the situation the trust found itself in and they still wanted to demolish the building, he said.
"We will leave the Club Hotel there - at least for next year's event. In two or three months we will start to discuss other options for the building."
About 4000 tickets were available for the festival. Mr Edminstin believed safety risks surrounding the building were under control.
"Safety could be a problem in the future if we have further deterioration. But at the moment, Invercargill City Council don't deem the building unsafe, so everything is good to carry on."