Wellington City Council has announced it has ended negotiations with Reading International to re-open the closed cinema complex on Courtenay Place.

The council had planned buy the land underneath the cinema for $32 million, money which the cinema would use to redevelop the building.

Reading’s annual rent would cover the council’s costs making it fiscally neutral to ratepayers but Reading could buy back the land for the council’s original purchase price within the first 10 years.

However, senior council staff now say they have not been able to reach the best possible outcomes for Wellingtonians and the decision was made this week not to pursue the proposal further.

Mayor Tory Whanau and elected members were briefed on the decision this afternoon.

Whanau called the outcome “disappointing, but the right one”.

More to come...

- NZ Herald