A new report will be presented to councillors at their October 3 meeting, the last before the October 12 local elections.
The land at Ngāwhā was purchased from Top Energy in 2017.
A council spokesman said the new Kaitaia kennels would ensure the council adhered to the Animal Welfare Act, Animal Welfare (Care and Procedures) Regulations, and the Code of Welfare for Dogs.
However, spokeswoman for lobby group Bay of Islands Watchdogs, Leonie Exel, was unimpressed with the Kaitaia plans, saying it was the kind of decision the group had come to expect from public exclusion.
The pound would not meet even minimum standards in the Temporary Housing for Companion Animals: Code of Welfare 2018 and, due to its proximity to sewage ponds, could not be opened to the public which meant fewer dogs would be rehomed.
Annette Inglis, a member of the Watchdogs' pound working group, said the council ''needed to realise the days of staff popping in to feed animals in a 'dog jail' are over, and start treating animals with compassion, as the law demands".