The Otago Daily Times emailed city and regional council staff yesterday requesting a copy of the letter under the terms of the Local Government Official Information and Meetings Act 1987, following verbal requests on Thursday.
The written request for the letter was declined by DCC staff less than two hours later, after consideration by council chief executive Jim Harland.
The decision was based on the council's need to carry out negotiations without prejudice or disadvantage, prevent likely unreasonable commercial prejudice to the council and the Carisbrook Stadium Trust, and protect information "which is subject to an express obligation of confidence", the decision read.
Mr Harland also considered the public interest argument for releasing the letter, "and is of the view that the greater public interest lies in the information being withheld", the decision read.
The council's decision was referred to the Office of the Ombudsmen, in Christchurch - as allowed for in the Act - and staff there agreed to launch a review under urgency yesterday.
A separate request for the letter, under the Official Information Act 1982, was also made to staff in Deputy Prime Minister Bill English's Wellington office yesterday - again under urgency - and was being considered.
No response to the ODT request was received from ORC staff yesterday.
The existence of the letter to Mr English was revealed on Wednesday, followed by claims it suggested trading equity in the council's $71 million social housing portfolio for government funds to support the stadium.
The letter, dated December 23, was co-signed by Dunedin Mayor Peter Chin and Otago Regional Council chairman Stephen Cairns.
Mr Chin initially declined all comment about the letter's existence on Wednesday, before admitting its existence on Thursday.
However, he and Mr Cairns both refused to release a copy to the ODT when a verbal request was first made on Thursday.
"The advice I have is it is a correspondence that's not discoverable at this stage," Mr Chin said at the time.
Local Government New Zealand governance manager Mike Reid, of Wellington, said when asked the mayor was entitled to engage in private correspondence with Government representatives, as long as the council's position was not misrepresented and it was made clear when a council resolution was still required.
However, whether the letter constituted official information that was in the public interest to release was "a fair question", he said.
"It's the sort of question the ombudsmen have to determine quite a lot," Mr Reid said.
Dunedin Ratepayers and Householders Association chairman Syd Adie yesterday questioned whether Mr Chin's letter could be private when he invited Mr Cairns to co-sign it.
"How stupid does he think we are? It's just not on," Mr Adie said.
