The council bought the 1400sq m section in 2006 to secure it for the expansion of The Elms.
In 2018 the council proposed to give the section to the Ōtamataha Trust, which represents the property interests of Ngāti Tapu and Ngai Tamarawaho.
Critics cried that the council bought the land for the Elms and it should be given to the foundation directly. Supporters of the proposal said the council never made a formal promise to the Elms and the land should be returned to tangata whenua.
The previous council, under mayor Greg Brownless, voted to give the land to the trust, then revoked the decision in favour of a joint ownership or leasing arrangement between the trust and foundation.
In December, the newly-elected council, under mayor Tenby Powell, overturned that decision and voted to give the section to the Ōtamataha Trust, subject to the lease for The Elms.