But the Southland District Council is being secretive about the extra information sought before a decision is made.
The building in Ohai, about an hour from Invercargill, has been used by Te Oruanui Marae Ohai Inc (TOMOI) since some time after September 2023, when the corporation was formed.
A Southland Times article from March talked about the effort that had gone into establishing a marae in the small town, and the positive impact it was having.
TOMOI requested the council consider transferring the building to it, which was deliberated on by the community board on April 3 ahead of a recommendation to full council.
The board meeting rendered no outcome, however, minutes showing chairman Tony Philpott requested more information from TOMOI before proceeding.
In response to questions, the council was not willing to comment publicly, a spokesperson saying discussions were continuing with TOMOI.
Mr Philpott said they were "doing some more investigating".
The report prepared for the community board gave background on the building, which was previously owned and occupied by the Ohai Rugby Club on council land.
The club rooms were sold to Te Oruanui Inc in 1994, with the land leased from 1999.
A "rolling-over" lease with Te Oruanui Inc was voided by the council when it later departed the building, with the group officially dissolving in 2021.
Ownership of the building then went back to the council, the report noting unpaid service charges of about $10,000 were still outstanding — a situation being worked through separately.
TOMOI did not form until September 2023, and was using the site without a lease on the building or land, the report said.
Council staff recommended the community board endorse a transfer of the building to TOMOI for $1, with an annual land lease of $100 plus GST.
Staff said it was appropriate to sell it for that amount because the council had come to own it at no cost following the demise of Te Oruanui Inc, and other costs were a factor for TOMOI going forward.
They included insurance, electricity, repairs and annual service charges of over $5000 per year.
TOMOI was contacted for comment but did not respond.
■LDR is local body journalism co-funded by RNZ and NZ On Air.
