In May this year Waipā District Council's Finance and Corporate Committee agreed to spend $90,000 in loan money to restore the structure.
But a Te Awamutu Community Board member wanted to explore the option of moving the structure to Anzac Green.
Richard Hurrell submitted a notice of motion in June recommending council investigate the support for, and costs associated with, the idea.
He said moving the structure to Anzac Green would mean it was used more by the community, especially for its intended purpose as an outdoor concert venue.
"The committee has already agreed to spend $90,000 on restoring it," Richard says.
"Why not pay more to move it to a place where it will be used?"
Councillor Hazel Barnes said she had consulted RSA members about the idea for the relocation.
"I've been made aware that the RSA totally rejects that move," she said.
"They see Anzac Green as their commemoration place and that's where they put their crosses out. They want Anzac Green to remain the function that it always has."
Te Awamutu RSA president Lou Brown confirmed he did not want to see the rotunda moved to Anzac Green.
"It's important we keep the integrity of Anzac Green, which is a place to commemorate the soldiers from the Waipā District who fought in the Great War."
But Richard says the area has not always been used solely as a memorial, and spaces like Anzac Green should be multi-purpose.
The area originally included outdoor swimming pools.
The first pool was built in the 1920s and a second was added 50 years later. The pools were removed when the Events Centre was built.
Richard says there is space for both the rotunda and for Anzac services.
He says the rotunda would be an ideal place for musicians to stand at Anzac Day services.
Richard says he is disappointed in the decision by the Finance and Corporate Committee.
"It's a missed opportunity and the easy way out."
Waipā District Council's property services staff say the relocation of the structure is not a viable option.
They say the amount of bracing required would be expensive and that there was no guarantee it would be able to be restored in the new location as it could be damaged in the move.
The base would also need to be fully reconstructed at the new location which would add further significant cost.
Councillor Marcus Gower said there needed to be more discussion around making better use of Te Awamutu's parks and open spaces.
"The band rotunda can stay there but we need to modify the park to make it more suitable for the rotunda to be used."
