The city council's general manager of consenting and compliance Leonie Rae said the tents are potentially in breach of the bylaws.
She said the Freedom Camping Bylaw prohibits camping activities in the central city.
The Public Places Bylaw prohibits the obstruction of a public place in circumstances which cause inconvenience or danger without written permission of the city council.
Mr Swiggs said it was a shame because someone had tried to do something nice for the men giving them the tents, but because of the complaints, the city council had to act.
"There were a number of complaints and when you get complaints to have to take action."
He and Ms Lowe-Johnson were working on securing funding to try to set up a centre where homeless people could go during the day, so they were not sitting outside businesses.
"The ultimate solution is to give them a day venue."