"[The] council must focus on the district's Build Back Better economic recovery plan," the council update said.
"As a result, the proposed Westbrook Sport and Recreation Precinct project timeline will be extended for it to be considered for the next Long-Term Plan in 2024."
Evolve Rotorua describes itself as an "advocacy group whose aim is to champion progressive social and economic projects and policies for an inclusive and sustainable Rotorua" on its website.
Spokesman Ben Sandford said his group was "disappointed" because there were "some good ideas in the project".
He said many sports facilities, not just in Rotorua but nationally, had suffered a "slow decline" for decades and it was likely a contributing factor to club sports "struggling".
Sandford said Rotorua would benefit from an indoor sports and training facility, as well as a rubber athletics track.
"There is no reason why we can't have fantastic facilities here but we need to plan for that and build them.
"If we want a comprehensive plan on how to deal with the issues that we do have and build fantastic facilities that ignite community involvement, then we should start now because getting it right could take time."
He said now was the "perfect time" to move the project ahead.
"Delaying the project won't solve the underlying issues that we have of aging or inappropriate sportsgrounds. This isn't going to attract people to sport and it will only mean that the costs of maintaining these facilities continues to increase."
Sandford said some criticism of the proposed precinct had been valid and it highlighted that sports facilities needed to be addressed "as a whole".
"That would then include where and why each sport is going to be in that particular location. This means that no group gets left out and that we have a comprehensive plan."
However, Springfield Golf Club president Paul Fox said the decision still left the future of the golf course up in the air.
"It's just delaying it for another four years. It still leaves us as a golf club in limbo.
Lake City Athletic Club president Rob Colledge had also been critical of the proposed precinct, saying it could "shove" athletics out of the area.
On Monday he said he was "certainly happy" about the decision.
He said he had been advised by a council employee that it gave the council a chance to see how it could be done better and how athletics facilities could be included in the precinct.
Colledge said he believed that demonstrated the council was making a "genuine effort" to consider his group's concerns.
A rubber track "certainly would draw people" to Rotorua.
The criticisms of the project's deferral were put to the Rotorua Lakes Council.
Council operations manager Jocelyn Mikaere said she understood the decision was disappointing to those who were keen to see the concept progress.
"The feedback we have received for this proposal to date and the engagement already undertaken with the clubs and codes has provided valuable insight into what [the] council needs to focus on regarding the concept."
Mikaere said the council was focusing on the Build Back Better economic recovery strategy but it was still committed to Vision 2030 goals, "including creating outstanding places to play".
"We will continue to work with stakeholders to provide the best possible facilities.
"It's important to note that background work to further investigate and plan for this concept will continue.
"[The] council will work with the sports community to better understand their needs and will continue to develop the masterplan so it is in the best position to be considered for the 2024-2034 Long-term Plan."
Submissions on the proposal closed on Friday last week. A council update said 90 people had given feedback on the idea.
Of those, the main themes - identified by the council - included protecting the amenity values for neighbouring properties, concerns about increased traffic, support for quality sportsfields and recreation facilities, all-weather athletics and continued access to golf facilities.