The City Council's Municipal Chambers are to be renovated as part of the Town Hall redevelopment, the remainder of which has been shelved until late next year.

The delay is a way to ease rates increases, and means the Dunedin Centre will remain open until early 2011.

The decision to extend the construction period means the Town Hall will operate until the Regent Theatre upgrade is complete, which means at least one large central venue will be available for graduation ceremonies and concerts.

The proposed new construction programme, to be finalised in March, will mean the Town Hall redevelopment will be complete in January 2013.