The board would be separate from the council and would allow for members to sit on council committees, be part of Resource Management Act decisions and establish its own sub-committees.
The proposal would also require the council to give its reasons, in writing, if the council did not accept the board's advice on any matters raised.
Mr McVicker said he could not and would not support the proposal which, in his opinion, was undemocratic and gave race-based privilege to Maori.
"I can't in all good conscience accept what the council is doing with this proposal, to me, it is wrong.
"I will stand strong on the issue and that takes priority for me at this time.
"It's a principled stance I'm making and I'm not going to change.
"The last thing I wanted to do was undermine [Mrs Chadwick's] leadership, I have supported her in all other matters, but this is a step too far," Mr McVicker said.
Mrs Chadwick said one of the six commitments councillors signed off as part of their Rotorua 2030 vision was to develop a new partnership model with Te Arawa.
"The growing economy in Rotorua is Maori," she said.
"The biggest ratepayers in Rotorua are Maori and Te Arawa gifted much of the land this city has been built on.
"It's important for all that council has an effective working partnership with Te Arawa," she said.
Deputy mayor Dave Donaldson will take over as lead of the Sustainable Economic Growth Strategy portfolio, and senior councillor Charles Sturt will replace Mr Donaldson in the lead role for the Sport and Recreation Strategy portfolio.