"It's not [the businesses'] job to be policing the street, they are here from 6.30am to 8.30pm at night."
She said having the shelter on the same street as a bar and the Ministry of Social Development building was like "putting all the problematic people in one area".
"I have spoken to Tiny numerous times and he had no suggestions on how he could manage it.
"What I'm trying to do now is sit down with business owners, the council, our local MPs and have a roundtable discussion about how we can address this."
Morrison said she was trying to find a reasonable solution for both the CBD and those in need.
"When you've got the majority being a nuisance, it becomes a health and safety issue."
On the other side of the drop-in centre is the Salvation Army Family Store.
Salvation Army Rotorua Lieutenant Kylie Overbye said it was also experiencing issues where people felt intimidated walking past the centre.
"People aren't feeling comfortable going into the store.
"We realise this is a difficult situation because they're human beings and they need somewhere to go as well."
Across the road, Dave Prendergast, owner of Furniture Court, said some of the problems being created by the centre needed to be addressed.
"It's the spitting, the loitering, the smoking, it just gets so ugly sometimes."
He said Deane was doing his very best and what was "morally right" but more measures needed to be put in place.
Deane said there was not a lot more they could do to prevent the issues.
"Everyone is putting this back on me, and that's a little bit sad.
"We're trying to feed them, house them and get them jobs, there is only so much we can do about what they do on the streets."
A security guard has been put in place outside the shelter in an attempt to break up any loitering.
Deane said before that he was outside at the shelter from 7am every morning to make people feel safer.
"People think we have all this money, but we don't and it's getting harder and harder for us. The drop-in centre will never close, because they can't shut us for what happens outside.
"My name was thrown out there as 'Tiny should lead this', now I am getting ... crap for it, I just want to help the homeless, I hate the politics."
Rotorua police Senior Sergeant Graeme Hill said they had been called to the centre a "couple of times" to deal with issues around loitering.
"We talk with the organisers of the drop-in centre about prevention stuff all the time.
"We know people have issues with it, but it's a catch 22, because where are you going to put these people?"
He said he was aware the organisers had arranged for a security guard outside the shelter to mitigate some of the issues.
Rotorua Lakes Council group manager Māori Gina Rangi said the council had been made aware of several concerns about loitering and anti-social behaviour along Pukuatua St.
"We are currently following these up with local businesses, and we have also sought advice from the police.
"We are concerned by the reports and will be working with multiple groups to ensure the city is as safe as possible for everyone."
