Upgrades of the Cargo Shed will not be continued due to results of a geotechnical assessment, undertaken to inform the planned internal upgrades.
In a written statement, the Tauranga City Council said the results of the geotechnical assessment were in relation to the susceptibility of the property during earthquakes.
The Cargo Shed would require extensive foundation improvements to stabilise the property and reduce the risk during a seismic event, the council said.
"Significant structural improvement is also required to bring the Cargo Shed up to today's standards."
"Due to the cost involved with upgrading to meet these standards, the council will not continue with the upgrades and the Cargo Shed will not be available for bookings."