In court last year Christopher Anthony admitted damaging the Grade II-listed building during work in 2008.
The judge ruled Mr Anthony could not afford to pay the council's legal bill but gave permission for the issue to be revisited within a certain time frame.
Officials have now said Mr Anthony's circumstances have not changed and the order had been allowed to lapse.
The Hippodrome has been derelict for some years when much of the roof and part of the exterior walls collapsed in 2008.
In April 2010 developer Mr Anthony, of Bishops Stortford, was given a conditional discharge after admitting ordering work on the building without permission.
Since then the council has carried out £43,000 worth of stabilisation work on the structure.
A spokesman said: "Derby City Council intends to recover the cost of the works carried out on Macklin Street and we are reviewing Mr Anthony's financial circumstances to assess the available options."
Derby City Council has decided not to pursue the owner of the Hippodrome Theatre for £17,000 in legal costs.