While Tuohy, the veteran Australian official who helped rescue the Open from a financial crisis four years ago, praised aspects of The Hills, he pointed out the venue also had some "down-sides".
He also said management at the private course had failed to provide convincing evidence it could "take the tournament forward".
It is now a full year since the last Open was held in Arrowtown, and eight months since New Zealand Golf planned to confirm where the 2011 tournament would be played.
The Otago Daily Times broke the news in July that Clearwater, the exclusive course near Christchurch, was considered the leading contender to gain hosting rights, but virtually no new information has since come to light.
New Zealand Golf continues to offer vague promises about when an announcement will be made, while The Hills slammed the "unprofessional" organisation in the Southland Times this week.
Tuohy said negotiations around the Open, which still has no firm date, venue, sponsor or co-sanctioning partner, were "bubbling along".
"I think there will be an announcement in the next couple of weeks," Tuohy told the Otago Daily Times from Australia.
"It's awfully close. But I really can't comment on any specifics."
Tuohy did confirm the Open was likely to be held in late November or early December, bringing it back in line with the major Australian events.
He said The Hills was a spectacular venue and was rated highly by the golfers and fans. But he did not hold back when he identified areas in which the course was not rated so highly.
"At the end of the day, commercial arrangements have to be sound with these sorts of tournaments," Tuohy said.
"The Hills is a very expensive venue. TV costs are way over the top, and infrastructure costs are a lot higher than elsewhere.
"And there are issues like the clubhouse, which isn't really suitable. Golfers have to take a bus to the range, that sort of thing."
Tuohy and The Hills are widely believed to have been at odds over the tournament, and Tuohy does not believe the course has reason to be frustrated at the delay.
"It's a year on now, and The Hills has been provided with every opportunity by New Zealand Golf.
"They were given the opportunity to show they could take the tournament forward, and I don't believe they have done that."
Tuohy mentioned Clearwater and the Wairakei course, near Taupo, as contenders to host the Open.
He said the Christchurch City Council, understood to be in line to underwrite the Open if it moves to Clearwater, had been a supporter of the sport for a long time.
"We've been talking to the Christchurch council for eight years. It's not like they just decided to get interested since the Open went to The Hills.
"They've supported us right through the Clearwater Classic and the PGA and the Women's Open. They put up their hands years ago to say they would love to be involved if the Open was ever to move to Christchurch."
Tuohy said he would defend New Zealand Golf from any suggestions the national body had dropped the ball over the last year.
"We've had a grand relationship with New Zealand Golf. It's been tough for them, and there's a lot more to this issue than you see on the surface.
"Scheduling golf tournaments on a global basis has become incredibly difficult. You've got dates and tours and broadcast partnerships to sort out, and it's not easy.
"New Zealand Golf are very much the innocent party here. We've been bumped around the place but it's all about getting the best deal."
