The proposal sparked heated debate with councillor Ann Court arguing the council should help the club shift to the Kerikeri Sports Complex next to the Heritage Bypass. Netball and rugby relocated there in 2009 and squash had always planned to follow, with $160,000 set aside in the council's budget towards new courts.
Ms Court said the squash and rugby clubs owned the pavilion before the council took over eight years ago.
"They built it, paid for it, sweated for it ... They'd like to use the insurance money to relocate to a new facility."
Some councillors argued Kerikeri residents should be consulted before the pavilion was demolished but Ms Court said the Domain was the subject of extensive consultation in 2007-09. A decision was made at that time to remove the pavilion.
The squash club had been in limbo for a year and more consultation would drag that out longer, she said.
Councillor Dave Hookway, however, was unhappy with the proposal, saying councillors should be given a full range of options, not just one. It was "repugnant" that councillors were being asked to decide the building's future without seeing the insurance report or knowing the costs of rebuilding and demolition.
"Do we have enough information to tear down a public asset? No," he said.
He put forward a motion to withdraw the proposal until councillors were provided with all relevant information. It was tied four-all so Mayor John Carter used his casting vote to support the delay. However, Mr Carter said the issue had been dragging on long enough and he expected a decision at the next council meeting.
Squash Club president Dave Collins said the preferred option was to build a new, four-court facility at the complex where consents, changing rooms and toilets were already in place.
The lack of a decision a year after the fire had led to some frustration among members, he said.
Councillors are due to make a decision on June 22.
