Greg Morris, deputy property manager, told the committee the best option was to manage the pavilion along the lines of the council's rural halls model rather than council's community organisations lease policy.
In this case Progress Castlecliff would be offered a three-year contract to manage the facility.
The option only needs sign-off from the Castlecliff group.
Under the new arrangement council would look after the external maintenance, cover the cost of insurance and rates, and make an annual payment to Progress Castlecliff of $1200 to help with the operating costs.
It will also pay phone line rental and security charges in relation to the pump monitoring of the downstairs toilets, which are open to the general public.
For its part Progress Castlecliff will be expected to look after internal maintenance, undertake and fund exterior upgrades such as the access ramp.
It will also look after public liability insurance and other expenses which the $1200 annual grant will cover.
The pavilion, at the end of Rangiora St, was built in 1966.