Central Hawke's Bay District Council has since sought and obtained legal advice about whether it should take legal action against any individuals or entities involved in the failed 2014 to 2017 works, in a bid to recover any losses suffered by the council.
Central Hawke's Bay mayor Alex Walker said the council had now decided not to pursue any legal action.
The decision was made at the council's finance and infrastructure committee meeting last week, following advice around the costs involved in taking legal action.
"This is not the result that any of us wanted, but the time, money and risk involved in pursuing this matter is not in the best interests of our community," Walker said.
"Council shares the frustration that our community has on this matter and thanks them for their patience as we have worked through this process.
"The ultimate decision is also frustrating, but we are now focused on how we front up to making sensible future investment in these buildings.
"This will be part of a strategic review of all council facilities, buildings, land and reserves over the coming six months."
The council has not made a decision on what to do with the library building, which remains closed.
