Tauranga City Council has voted to give 11 Mission Street to the Ōtamataha Trust.
The decision to return the land to tangata whenua came after a year of flip-flop votes by the council, including the revocation of two previous resolutions.
The second revocation came today, as a majority voted to ditch last term's decision to give the land to an entity that represented the interests of both the Elms Foundation and the trust.
The gift is conditional on the agreement of a peppercorn lease for the use of the land by the neighbouring Elms Foundation, which plans to develop it.
The vote was seven to three. Dawn Kiddie abstained.