Napier's dream of bringing two pandas to the unused Marineland is over because the area is too small.
Resident Max Patmoy, who had begun a campaign to create Pandaland, has canned the idea after doing research on the only other panda enclosure in the Southern Hemisphere, which is at Adelaide Zoo.
"I went through the annual report for the zoo and their panda sanctuary was something like three acres and had 5000 trees and pools and the rest," he said.
"I realised no way in the world would this fit on the Marineland site."
Mr Patmoy came up with the idea of vying for two Pandas from China after Prime Minister John Key said the Government was working on a deal to bring a pair to New Zealand.
The initial hurdle for the project was financial which Mr Patmoy said could have been overcome from public fundraising.
Initial estimates for the cost of the pandas were $15 million to redevelop the site and $1.4 million a year to lease the animals.
"The money could have been found but what to do if it physically can't fit in the space available?" Mr Patmoy said. "There's no room for it to spread out. It's blocked in by the ocean and the road."
Marineland was closed in 2008 when its last dolphin, Kelly, died, leaving only seals and penguins.
A phone line, website and social networking sites had been set up by Mr Patmoy and plans were in the works for a Panda Parade.
"It is a bit sad really, but I must say I've had a very good response from the councillors - they're working hard to find something to put in there, looking for a solution."
Napier councillor Dave Pipe chaired the meeting and announced the withdrawal of Mr Patmoy's idea.
Napier Mayor Barbara Arnott had said previously the council would not oppose the panda idea if Auckland or Wellington zoos passed on the idea.
Pandaland plan canned
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