The resignation took effect last Wednesday.
A group opposed to a skatepark has threatened to take TCDC to a judicial review over the process of establishing a long-awaited skatepark on Cory Park Domain.
Announcing the legal challenge, the mayor, Sandra Goudie, said the council would still back down and start again with the process, including a fresh round of consultation.
Construction on the skatepark was due to have begun next month.
"Irrespective of what the society decides to do, council and the community board will be asked to consider a staff report at their May meetings, recommending that all previous decisions relating to the skatepark at Cory Park be revoked and that the council starts the process afresh," said the mayor.
"This process would be run from the council's Thames office and the final decision made by council."
The Preserve Cory Park Domain Incorporated Society launched its legal challenge on March 11 and will not comment.
This came after the Tairua-Pauanui Community Board resolved at its February 17 meeting that the skatepark project could proceed at the domain, following a process throughout 2020.
Councillors Terry Walker and Gary Gotlieb were not made aware of the announcement prior to it being made public.
The decision was presented at a behind closed doors workshop, with several councillors, including Gotlieb who represents the Coromandel's South East ward, not present.
"I find this proposed action to reconsider to revoke decisions made as a step backwards and flies in the face of what democratic decision mean," said Councillor Walker.
"The Community Board is unanimous in support for Cory Park, council also unanimously supported Cory Park.
"Care was taken to follow process and tick all the boxes.
"The community contributed a third of the funds to build the skate park.
"This back-door dealing does nothing for the reputation of council and its staff," he said.
"Council's role is to make balanced decisions and support and defend those decisions for its ratepayers and residents to the end."
Gotlieb said it was concerning that councillors had been informed of court proceedings being issued, by way of a public statement on April 20.
"As councillors we need to know what has actually occurred. I am also concerned that there was not communication to advise the community board members who were also left in the dark. This is quite unacceptable.
"Quite frankly the process that has happened here is not good enough."