Vine St was determined as the best from four locations which were investigated.
Councillor Tricia Cutforth instead moved an alternative motion to refurbish and keep the Rose St bus hub where it is in the short term, while the need for and future location of a transport hub be considered as part of the CBD redevelopment.
"The issue we've got at the moment is the use of our bus service. I don't believe the Rose St bus hub as it is currently is the biggest problem."
She said the issue of the bus service is much bigger than the end point that is the terminal.
"My concern with Vine St, I think it will have a major impact on some of the shops there."
Mayor Sheryl Mai wanted to stick with the original recommendation.
She said the move from Rose St would signal a long-term change - it would show the council is committed to moving away.
She said Vine St had "changed dramatically" from a "night hub" to a "church hub" and it provided connections with the Strand Arcade and Quality St.
Councillors debated the pros and cons of the two sites.
Cr Greg Martin, who is chair of the committee, offered up the adage "nothing is more permanent than a temporary fix".
Mai's amendment was lost, with councillors voting in favour of Cr Cutforth's motion.