Scaffolding is being erected around the venue and will remain there indefinitely.

The council has circulated among state MPs a Saving the Palais brochure, which says $15 million "is required to keep the building open in the short term". It also wants the government to spend another $25 million over the long term.

"If we don't act now, The Palais faces imminent closure," the brochure says.

Former mayor Dick Gross has dubbed the funding push "government by stunt" and a fear campaign designed to make the council look like it is taking action.

The move comes five years after the council paid developers $5 million to dump plans that included the restoration of the heritage venue as part of the massive development of the St Kilda "triangle" site.

Those plans contained a $20 million provision to restore the Palais - half the amount the council now says it needs - but the project was derailed after community fury over plans for the greater triangle site.

Since then only minor works have been done to the the 87-year-old building.

The operator that took over seven years ago has built up the business and now has more than 100 shows a year – including Bob Dylan this week.

Palais chief executive Neil Croker said there was no issue with visiting the venue. He said the government could provide limited funding to help restoration. But he stopped short of backing the council's demand for $15 million.

Instead, he said the state should consider extending his company's lease in return for it funding long-term renovations.

Victorians own The Palais but since a 50-year lease expired in 2006 it has been managed by Port Phillip Council.

Mayor Amanda Stevens said a condition assessment of The Palais had identified significant building issues that required immediate attention.

As a safety measure, the council had removed loose render and architectural features and boarded up unsecured windows.

Cr Stevens said the council had "really strong concerns about the future of the Palais", and were petitioning the government and state opposition ahead of November's state election.

Minister for Environment and Climate Change Ryan Smith said the former mayor, the council and the leasee all had different views on what should happen to the Palais.

The government would appoint a consultant to look over the site and decide what repairs were needed, he said.

"This is the right process to guarantee a future for the Palais and cooler heads must prevail," he said.

Former mayor DIck Gross was heavily involved in the 2008 plan originally approved for the triangle site. He was stinging in his criticism of the council's demand that the state restore The Palais.

"State governments simply do not take responsiblity for heritage theatres. There is an infrastructure crisis in schools and hospitals, and for them to expect the begging bowl to work is a complete misunderstanding of state politics in an election year," he said.

Mr Gross said the renovations should not be paid for by taxpayers. "It needs private investment facilitated by a foresightful government," he said, comparing it to Collins Street's Regent Theatre.

Emergency work the council says must be completed within six months, costing $15m:

• Repair external structure
• Reseal exterior to prevent further damage
• Replace all windows
• Upgrade all electrics
• Works to support interior dome
• Fire protection works

• Building works
• Occupational health and safety works
• Disability accessibility works