On August 6 the trust resolved to close and pay its entire trust fund to Momentum Waikato, which is leading the project to develop the theatre.
Trustee Thomas Gibbons told the council the funding would act as a kick-starter to the council's financial contribution to the project.
Hamilton City councillor Mark Bunting said he was torn over the theatre project, as it took money away from the community sector which was already pleading for crumbs from the table.
"We are saying sorry but the whole fund has gone to the theatre," Mr Bunting said.
Councillor Paula Southgate supported the theatre move, but was concerned about the loss of funds for community groups.
"My personal preference would have been to allow the public to have had a bit more say on this," Ms Southgate said. "I am not going to stand against this because we are all for making this theatre the most successful theatre it can be."
Chair of Momentum Waikato Leonard Gardner spoke at the meeting, saying the theatre project is on track.
"It is taking shape quickly from our side of things," Mr Gardner said.
He reiterated to council that they will need to pay only the $25 million towards the theatre, along with the operational costs.