The Department of Corrections announced last month it was "disposing" of the decommissioned 113-year-old prison and a commercially sensitive process had to be followed.
Groups at the time said the prison could be used for a multitude of purposes, including a backpacker or boutique accommodation, visitors centre, museum or restaurant and bar.
In a letter to Tony MacGowan, of Land Information Services in Invercargill, dated July 8, Mr Chin said the council did not require the building for any public work.
"I have been approached by members of the community who are keen to have the heritage values of the building preserved. While there is no benefit to the council in taking ownership of the building, and it is not something we wish to pursue, I have offered to give some assistance to them to explore options to enable them to achieve their objectives."
When contacted yesterday and asked about the fate of the prison Mr Chin said: "At the present time it is not a matter for us to consider".
He did not wish to "speculate" on what would happen after the crown disposal process was completed and he could not comment on whether the council had spoken about the fate of the building or whether it would in the future.
"There is nothing else to say. There is nothing to talk about."
Mr Chin also said in the letter he would like to be told when the building was ready to be offered to Ngai Tahu.
Southern Heritage Trust founding member Ann Barsby recently emailed a report to interested parties about the progress of the "disposal" process, which she said was expected to take three months or more.
In it, she said a report on the building was being prepared by the Historic Places Trust. Land Information Services was preparing information which identified issues concerning the sale of the site and buildings.
The report would then be sent to Land Information New Zealand for approval. After the process, the building would be offered to Ngai Tahu, which must make a decision within 30 days.
