"We already carry significant debt. Both the government and the church are trying to keep access available to all families by managing the costs."
Ferris said the subsidy the church gave to the state was a "win-win for both parties".
"We know that schooling in Pāpāmoa is urgently needed by the state and the area," he said.
"There is a strong demand for that kind of school in the Pāpāmoa area."
Catholic Integrated Schools Office schools property and finance manager Graeme Roil said the Hamilton Catholic Diocese was committed to establishing a Catholic primary school in Pāpāmoa.
"We have had an application with the Ministry of Education for some time and we are constructively working with them to progress this," he said.
"We have no update at this time as to the likely timing of when a decision will be made."
Roil said the land was purchased about five years ago for the purpose of a new primary school and any future potential needs of the parish.
Ministry of Education deputy secretary of enablement and support Katrina Casey said the Government can contribute funding towards building new state-integrated schools at the Minister's discretion.
But, she said, in this instance, the Minister decided not to give approval.
A spokeswoman for the Minister of Education Chris Hipkins said it was because there was no funding for new buildings at integrated schools available in Budget 2018.
Casey said the Ministry had identified Pāpāmoa as a high growth area.
She said ongoing strategic planning included the opening of Papamoa College and Golden Sands School in 2011, as well as approving funding to expand Golden Sands School in 2017 and to buy land for two new primary schools in Pāpāmoa East.
A new school at Pyes Pa West was also expected to open at the beginning of 2019.
The Ministry was currently seeking feedback on the establishment of a new state primary school in Pāpāmoa on Te Okuroa Drive in 2021 at the earliest.
Nominations were being accepted for the establishment Board of Trustees, with the consultation period open until November 16.
A Tauranga City Council spokeswoman said the Catholic Diocese of Hamilton owned the undeveloped land at the intersection of Golden Sands Drive and The Boulevard.
The land intended was being prepared for use as a tsunami refuge for Pāpāmoa East.
Tauranga City Council emergency management manager Paul Baunton told the Bay of Plenty Times sand from the Te Okuroa Drive extension excavation was being stockpiled on the site. The refuge would become part of the school grounds if it went ahead.
Tauranga's state integrated Catholic schools:
St Thomas More Catholic School
Type: Primary school (Year 1-6)
July 2018 roll: 212
Max roll: 240
St Mary's Catholic School
Type: Primary school (Year 1-6)
July 2018 roll: 428
Max roll: 500
Aquinas College
Type: College (Year 7-13)
July 2018 roll: 738
Max roll: 750
Source: Ministry of Education