Updated 09.39am: Two people have been decontaminated at Western Bay District Council.
Fire service Bay of Plenty coast assistant area manager Graeme Easton said the two council staff members who had been in the mail room had been decontaminated on site behind the council building in decontamination showers.
The pair were currently being check over by St John but both appeared to be fine, he said.
The two staff would be medically tagged so if there were any medical complications in the future, hospital staff would be aware of today's scare.
Authorities have no idea what the red powder is, he said.
Updated 09.15am: Council staff opened a package in the mail room of the Western Bay District Council offices, discovering suspicious red powder with a threatening note.
The amount of red powder has been described as small, a reporter on the scene said.
The mail room is now being decontaminated and a small number of council staff will be decontaminated as well.
Police will send the envelope away for testing.
There has been a decontamination tent set up on the side of the building at council.
Updated 08.58am: Western Bay of Plenty District Council staff found what appeared to be a suspicious item of mail this morning.
The staff followed the correct procedures, which involved contacting the New Zealand Fire Service and Police, and evacuated the small area of the building where the item was found.
The area will remain out of bounds until clearance is given by authorities.
Currently the fire department are at the council's head office and are expected to take away the offending item for analysis.
A reporter at the scene said there had been no major evacuations or road closures, and fire trucks and a hazmat truck were still at the scene.
Earlier: A suspicious envelope has been found at the Western Bay District Council this morning.
Fire and police are at the site on Cameron Rd, in Greerton.
It was not known if the building had been evacuated or not, a police Northern Communication Centre spokesperson said.