In a heated discussion during yesterday's council meeting, Mrs Hadley put to rest concerns of councillors who first raised the issue during October's council meeting.
She said that despite what had been reported in the media, there had ''never been a formal report to the decision-making body known as the Invercargill City Council for funding for this project''.
A story on TVNZ's Seven Sharp in September claimed Invercargill Mayor Tim Shadbolt had mentioned using city funds to buy the hotel in Le Quesnoy.
Further questions were raised after several emails came to light between the mayor and Sir Don McKinnon about the issue.
Cr Karen Arnold questioned the mayor after a promised update during his monthly report did not materialise.
Concerns were elevated by several other councillors before Mrs Hadley stepped in to confirm the absence of a request.
Cr Lesley Soper followed the confirmation by recommending council ask Sir Don ''where he got the idea'', saying she did ''not believe council needs to spend anymore time on this issue''.
The council meeting yesterday also approved an extended alcohol ban surrounding Christmas at the Races, in Invercargill on December 15.
The ban will be extended by two hours and will be in place between 10am and 10pm, in the area from the intersection of St Andrew St and Racecourse Rd to the entrance of the Ascot Park Hotel, and from Racecourse Rd to Derwent St, on Yarrow St.
