Enterprise Dunedin was the subject of a frank review this year and the council had been expected to choose a new model by Christmas.
Completion of a council staff report about two options was delayed and the council now aimed to report to councillors in January next year, the council confirmed this week.
Business South chief executive Mike Collins was disappointed about the delay.
"Everyone thinks it's coming this side of Christmas, so that would be news to the business community — a bit of a surprise," he said.
"We want to have some certainty around the future of economic development.
"We want to get momentum going in the city and the sooner that resolution is made, the better."
Enterprise Dunedin was set up in 2014, bringing together the council’s previous economic development unit, visitor information centre and previous functions of Tourism Dunedin.
In August this year, consultancy MyGovernance strongly recommended the agency be taken out of council operations and that it be run instead by a new council-controlled organisation, supported by a board and stakeholders’ advisory group.
This option was to be compared with what was described as an enhanced version of the status quo. That might include redistributing activities internally.
Council chief executive Sandy Graham indicated to the council at the time that preparation of a business case need not be onerous and could be ready soon after the election.
"It will be done reasonably quickly and efficiently."
In August, several councillors called for change to be implemented as quickly as possible while being careful to avoid causing unintended consequences and unnecessary angst for staff.
The MyGovernance report was clear key elements of the business sector became disenchanted with the economic development and destination marketing agency, particularly about the council’s input.
Feedback included that the agency was hindered by unclear direction and weak governance.
The consultants commented the most significant story they kept hearing from stakeholders was they had lost confidence in Enterprise Dunedin largely because of actions by the council as an organisation and councillors as governors.
Elected representatives agreed unanimously on the path ahead, including engaging with the Grow Dunedin Partnership grouping.
The Otago Daily Times asked the council this week how it would describe its engagement with Grow Dunedin Partnership so far. The council had no comment about that.
A new model for Enterprise Dunedin could operate from July next year.
