Waterfront Auckland, the council-owned body in charge of developing Wynyard Quarter, is understood to be miffed at Mr Keith's plans to place artworks on privately-leased sites through Wynyard Quarter for up to eight years.
It is concerned about Aucklanders growing fond of the painted tanks and objecting to their removal for land development.
Chief executive John Dalzell declined to answer questions, but in a statement the council body said it had been approached by Mr Keith with a proposal with funding and artists confirmed and an agreement from the owners of the tanks.
"We looked at it and supported it on the proviso that the public nature of the waterfront was acknowledged and once the first phase had been done we'd look at the public response before supporting any further work," the statement said.
Mr Keith said the project had the support of Waterfront Auckland chairman Bob Harvey and had jumped through all the hoops.
The first work had been sponsored by Westpac and once further sponsorship was secured, Christchurch-based artist Darren George would undertake a work on several large tanks towards the headland. Other artists lined up were Judy Millar, Sara Hughes and John Pule.
Elliot O'Donnell, whose run-in with officialdom included one of his large works on a private building near Karangahape Rd being painted over by the council, believed the site was the perfect place for his latest artwork, which drew on recollections in the area of the ocean, sands and rusting metal of old ships.
Heart of the City has also been on board and provided assistance. Chief executive Alex Swney said it fitted its annual art week like a glove.
