A consent for a "temporary boundary treatment" was granted by the council late last month.
It said the applicant, Otakou Health Ltd, bought the property in 2022 when it was already listed as a dangerous building and was now seeking its demolition as recommended in a 2021 structural engineering report by Stevenson Brown Ltd.
Otakou Health Ltd originally wanted to erect deer fencing with decorative scrim wrap clad to it while the site awaited redevelopment, but it was believed the transparency of the scrim would allow the vacant site to be seen while also attracting graffiti.
Instead, a 2m-high fence was proposed, to enable the process of obtaining artwork to adorn it through Ara Toi Ōtepoti — the Arts and Culture Strategy.
"The applicant agreed to proceed with council’s suggested alternative option provided council can potentially supply the appropriate hoarding/decorative panels and facilitate the artwork activity," the consent said.
"Unfortunately, council is unable to secure the necessary hoardings/decorative banners (specifically used for decorative purposes) and has been unsuccessful in securing funding to facilitate any artworks."
Temporary construction fencing would be used on the site.
Privacy and security would be maintained and a significant adverse effect on the amenity of the site was unlikely, the decision said.
There was no indication of the redevelopment planned for the site.