Instead, Mr Chin and the letter's co-author, Otago Regional Council chairman Stephen Cairns, yesterday released a joint statement on its contents, including an extract discussing a lack of private sector support.
The letter, sent to Deputy Prime Minister Bill English, described a $35 million funding shortfall - blamed in part on the difficulties raising private sector support - as the "remaining substantial hurdle" for the project ahead of "crucial" meetings in the next few weeks.
"The council has actively pursued all the opportunities . . . and to date we have not been successful.
"It would be valuable to have an interim response by then from the Government as to how it may wish to be involved in supporting the proposed stadium," the extract read.
The letter was signed on December 23.
Yesterday, Carisbrook Stadium Trust chairman Malcolm Farry said pledged private financing now stood at between $25 million and $27 million after announcing details of a naming rights sponsor.
However, the ODT was yesterday also told the letter raised the prospect of a deal with the Government, trading equity in the Dunedin City Council's $71 million social housing portfolio for Government funds for the stadium.
The council source, who asked to remain anonymous, said the deal aimed to offset the private sector fundraising, rather than ease the burden that could be faced by ratepayers.
Asked about the claim yesterday, Mr Chin said he was "not prepared to comment any further than the statement I have made".
If true, such a deal would be similar to moves in Auckland city, which sold its social housing to the Government, and Wellington city, which raised $220 million through a similar sale.
The letter's existence was first leaked to the Otago Daily Times on Wednesday, as Cr Teresa Stevenson wrote to the newspaper questioning Mr Chin's authority to seek support from the Government for the stadium without a prior council resolution.
Yesterday, Mr Chin confirmed Cr Stevenson was the subject of formal proceedings following a complaint by another councillor, whom he declined to name.
He declined to elaborate, saying only: "There has been a complaint that's been made and I'm dealing with it."At the same time, he defended writing the letter, saying council resolutions passed on March 17 last year - in relation to the stadium - included a pledge to explore all external funding opportunities.
"I believe I'm operating within the boundaries of the resolutions and my duties as mayor," he said.
Local Government New Zealand governance manager Mike Reid, of Wellington, agreed, saying mayors were entitled to write to members of the Government as individual citizens, elected representatives or in the official capacity of their office.
The "private" correspondence could include suggestions for initiatives, or pitches for funding, as long as the position of the full council was not misrepresented, and as long as it was clear when a subsequent council resolution would be required, he said.
"But, clearly, at some point, it has to be backed up by a council resolution . . . the mayor has only got a limited degree of authority," Mr Reid said.
If Cr Stevenson was found to have breached the council's standing orders, or the terms of the Local Government Official Information and Meetings Act, she could face a "stern telling off by the mayor", he said.
Other measures available included removal from positions of seniority - Cr Stevenson does not hold the chair or deputy chair of any of the council's committees - or, in cases of a serious criminal conviction or a mental health order, instant dismissal, he said.
Contacted yesterday, Cr Stevenson was yet to speak to Mr Chin but reiterated her position: "I was simply questioning his authority to send such a letter . . . which I don't think is such a terrible thing."
She said it was "wonderful" government funds were available for infrastructure projects, but suggested other planned capital projects could be more deserving of financial support than the stadium.
Stop the Stadium president Bev Butler issued a statement yesterday criticising the council's lack of transparency.
