"When the mayor came back and said 'I can understand your concerns Mike but I cannot say anything at this point it is public excluded, we just can't speak to you'. When I got that letter, when I got that reply I thought wow, there's something suspicious here."
After a battle for information about the development, it was finally made public just weeks ago.
That was despite the council - in December - agreeing to sell the land to Kāinga Ora.
"Our main concern is that we have not been consulted," Smith said.
"This was hidden from view for nine months. They made that decision on the 9th of December and they have totally kept everyone in the dark - and that's what upsets people more than anything."
The land which Napier City Council is working through selling to Kāinga Ora for a housing development. Photo RNZ/ Tom Kitchin
Mayoral candidate and current councillor Nigel Simpson said he was against the secrecy.
"It's certainly something that the new council need to consider is transparency - it's been a promise made before and clearly not being delivered on. Council needs to consider when it's discussing things behind closed doors, should there simply be a default period of time that these things become public?"
He wanted to see the land sold on the open market.
"Bearing in mind if it's for social housing the Government's got deep pockets, they should meet the market."
Mayoral candidate and current mayor Kirsten Wise said Napier had one of the highest social housing wait lists in the country, so had a huge need for social housing.
"We know for a fact there are over 150 families, including 140 children living in motels and on our Marine Parade alone, there are close to 50 people living in their cars.''
She said working with one developer like Kāinga Ora allowed the council to maintain control over the development.
The council wants about 100 houses to go there - 30 per cent social housing, 30 per cent affordable homes for the likes of first home buyers, and the rest to be sold on the open market.
She said keeping the plan private was normal practice.
"We have dozens of transactions around land per year and they are always in public excluded - just to enable us to be able to negotiate with the potential purchaser or vendor or person we're selling to."
Despite the council's decision in December, the transaction was not yet a done deal, as it was still negotiating with Kāinga Ora, Wise said.
It was also negotiating with transport agency Waka Kotahi to lift a designation it has on part of the land, meaning it could be used for a highway.
