Newcastle City Council finances are putting a hold on gallery redevelopment plans as Lord Mayor, Jeff McCloy, remains reluctant to ask for missing funds from the State Government.
They are waiting on $7 million in federal grants to join the $14 million already set aside for the ambitious project.
However, it seems the Council may have gotten cold feet, citing their dire financial situation as the primary cause of delay.
Councillor, Tim Crackenthorpe, say he would like to see the redevelopment still to go ahead.