The ABC has reported that the City of Sydney has reduced rent for Palace Cinemas to keep the Chauvel Cinema, a beloved venue in Paddington Town Hall, operational. Facing poor ticket sales and a deteriorating building, Palace had considered closing the two-screen cinema, which has been running at a loss. The council approved the rent reduction for the remainder of Palace’s lease, which expires in March 2026.

Chauvel Cinema from PadSoc InstagramPalace CEO Benjamin Zeccola attributed declining attendance to the building’s dilapidated state, which has suffered from issues like water damage. While Palace is responsible for interior upkeep, Zeccola said they have tried to address maintenance problems with the council for nearly a decade. The council allocated $25 million in June to upgrade the 120-year-old Paddington Town Hall but noted that Palace must re-tender for a lease if they wish to remain beyond 2026, in line with NSW laws limiting leases on community land to 21 years.

The rent reduction offers short-term relief, but the cinema’s future remains uncertain. Lord Mayor Clover Moore praised the decision, emphasizing the Chauvel’s cultural significance and its role in Oxford Street’s vibrancy. However, the council did not disclose the extent of the rent reduction, described as “significant” by sources.

Opposition came from some councillors, including Greens’ Matthew Thompson, who argued that the council should prioritize non-profits over supporting a for-profit national chain. Independent councillor Yvonne Wheldon expressed concerns about the lack of justification for aiding a profitable company but acknowledged the economic impact on local businesses if the cinema closed.

The Chauvel’s fate hinges on future decisions, as the council considers broader uses for the historic venue, including community-oriented purposes.

Read the full story on the ABC News website.