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The council has also waived $600 in fines handed to Russell Lund over signage on his Loan and Mercantile building and at 186 Main South Rd, Green Island.
City services general manager Sandy Graham said the council had not followed normal processes when responding to a query from the Otago Daily Times about the issue last Friday, and had breached Mr Lund's privacy.
''We apologise for this and for any distress this has caused Mr Lund.''
Mr Lund said he accepted it had been a mistake, and he was ''heartened'' by the council's quick acknowledgement of that.
''Council needs to be very careful with how they handle private information that can affect elections and they would be first to agree that they have made a mess of this one.''
The enforcement action remained in place.
The Dunedin businessman previously said he and the council disagreed over whether the signs advertising the benefits of living in his building resembled his election signs, which had ''similar themes''.