The playcentre's lease, which expired in September 2019, was extended for 12 months while the council investigated future uses of the building during the Cornwall Park Reserve Management Plan process.
Fifty-five submissions were heard in regards to the draft plan that asked about the future of this building.
Twenty-eight supported the renewal of the lease and six, one of which was from the Friends of Cornwall Park group which represents more than 100 members, supporting allowing alternative community uses for the building.
The playcentre's approximately 25 families and staff released a statement to Hawke's Bay Today today,
saying they were "blindsided" by the decision and the council "has acted in bad faith".
The playcentre's president Susy Ratcliffe, says eight months is not enough time to sort out the playcentre's future, which is now up in the air.
Ratcliffe said the last conversation they had with council prior to the decision was "really positive" and it thought it would get a new three-year lease, on the condition other community groups could use it when it was closed for the day.
"We were happy to do that, we thought that's great, we are all about community, that's what playcentre is," Ratcliffe said.
She said, during the process, the playcentre had been guaranteed it wouldn't "just be kicked out" and plenty of time would be given.
Ratcliffe said commercial rents aren't an option for the not-for-profit organisation, which does not charge families and asks only for an optional $25 donation a term.
It currently pays a subsidised rent of $600 a year to the council.
Councillor Malcolm Dixon said, in moving the recommendation, that submissions on the Cornwall Park plan identified a need for a multi-use community space.
"This could include anything from Tai Chi to fitness groups, children's activities, toy library and sports groups – I see this becoming a community asset just like the Mackersey Family Pavilion in Havelock North."
Hazlehurst said the decision represented an opportunity for a community facility "to support a sense of community identity and belonging".
"The playcentre is a valued community asset, and they along with other groups will be able to apply for and book the building for their activities," Hazlehurst said.
The planned renovations include upgrading the building, converting the rear extension of the building to provide an accessible public bathroom facility, and constructing an accessible playground, including liberty swing, next to the building.
The acting General Manager of Playcentre Aotearoa, Thomas Tawhiri, says the council decision is disappointing.
He says the national body will fight to keep the playcentre going.