The council will look at other ways to achieve the project objectives through a refreshed Kāpiti Coast economic development strategy and working with iwi partners, community and stakeholders.
Kāpiti Mayor Janet Holborow acknowledged the project had been the subject of a high level of public interest.
“In the context of the current cost of living crisis and what’s happening across the country in terms of climate change, we need to consider what’s most important to us at this time.
“Council remains committed to achieving the project objectives, including working with our iwi partners to acknowledge the significance of the site, celebrating our rich cultural history, improving biosecurity practices for Kāpiti Island and promoting our district as a tourist destination.
“We recognise the deep connections our iwi partners have with the Te Uruhi location and the inherited responsibility they feel to care for the area.
“Council will continue working with mana whenua to help achieve their aspirations of restoring the visibility of their connections to the area.
“We have also heard from our community about the need for them to be more involved in the development of any future project.
Holborow identified other opportunities for achieving project objectives, including cultural expression at Maclean Park, working with iwi closely during planning for the new community centre and Waikanae Library, and working with the Department of Conservation and the Kāpiti Island tour operator to improve biosecurity practices.
To date, $1.55m has been spent on the Te Uruhi project.
Of this, $557,000 came from the Government’s Covid-19 Response and Recovery Fund and $1 million from the council’s budget.
The funding was spent on upgrading the Tikotu Stream, design and professional fees, and consenting and project management costs.