Legal advisers say Tauranga City Council shouldn't revoke 11 Mission St decision

11 Mission St, the land in question, is outlined in blue.

A decision around the future of 11 Mission St has been deferred until this afternoon after the council heard it may be wading into legally sensitive waters.

Tauranga City Council is revisiting its decision last week to give the land, next to the Elms, to the Ōtamataha Trust, subject to the endorsement of the Elms Foundation and a $1 a year lease agreement for the Elms.

Some councillors have raised concerns that information about the position of the Elms had not been made clear to the last meeting and called for the decision to be overturned.

Read more: 'Unacceptable': Legal action threatened over omitted information in council's Mission St decision

Council growth and strategy manager Christine Jones said the council had received legal advice over the phone that it "should not revoke or alter" the resolution.

It could "supplement" the resolution with more information but it would have to be worded carefully, she said.

The legal advice was sought after the council received official notice from the Elms board last night that it had voted to endorse the transfer.

In a letter, chairman Ian Thomas said:

"The Elms Board has endeavoured to remain neutral in respect to TCC's process of a gift or otherwise of No. 11 Mission Street to Ōtamataha Trust while remaining consistent that the primary position of The Elms Foundation is for No. 11 Mission St to be transferred to The Elms Foundation."

He also said the board believed the endorsement was not required, but "to remove any doubt, the board endorses the transfer to the Ōtamataha Trust with lease back".

A memo from the Elms Foundation regarding 11 Mission St.

Jones said there had been some confusion about the Elms' position, and specifically how it could be both neutral and have a primary preference the land go to the foundation.

"In fact, they are both. They in no way wish to influence the council decision process and they very clearly wanted to remain neutral."

The council bought the 1400sq m section 11 Mission St in 2006 for $825,000 to protect the Elms' borders. It is now worth $1m.

The council deferred the discussion to get the legal advice in writing. It is expected to resume at some point after 1pm today.