The proceeds from the $27.2 million sale are earmarked for at least two of three identified alternative public spaces along the downtown waterfront.
The reclamation plan involves two of the spaces - at the foot of lower Albert St and around the historic Ferry Building. The third space to the east of Queens Wharf in the Admiralty Steps area is still owned by Ports of Auckland.
A spokesman for the council group investigating the public space options said Aucklanders have told us they want quality, fun public space by the water's edge.
"The ferry basin area has a great deal of potential to meet some of those needs, but it needs a lot of work. This is just a proposal at this stage and there is no suggestion there would be reclamation - more likely is a piled wharf structure similar to other structures around the waterfront.
"The proposed areas for providing new or improved public spaces by the water were approved to go to consultation by a majority of Councillors over a year ago.
"Public consultation will be an essential part of this project, and the first step will be to pull ideas together to enable that engagement at an early stage. The only givens are that this space needs considerable improvement, and the necessary upgrade to the seawall is the obvious time to do it. Everything else is there for input, and that includes the size of the space, configuration, design and how it's used," the spokesman said.
The city centre advisory board, of which only three of the 18 members are councillors, was the first body to learn about the reclamation plan.
Mr Lee, Waitemata and Gulf ward councillor and member of the advisory board, said no-one had asked or informed the public about reclaiming the harbour in the ferry basin.
"It's extraordinarily arrogant of the Council to make decisions in this way in such a publicly sensitive area," he said.
Mr Lee said there had been a cascade of bad decision since officers caved into the demands of Precinct Properties and pushed through the privatisation of Queen Elizabeth square.
"Given its determination to reclaim the harbour in the ferry basin one wonders is this why the council was so adamant in its legal support of the Ports of Auckland Bledisloe extension/reclamation?"
Architect Julie Stout, of Urban Auckland, the society of architectural and planning professionals that won a landmark court victory in June against the Bledisloe Wharf extensions at Ports of Auckland, said the plan was a good move.
"They have to strengthen the sea wall down there and add to the public waterfront space moving east west," she said.
But Ms Stout said the work should not be seen as compensation to the public for selling Queen Elizabeth square.
