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The Ngati Te Whiti Whenua Topu Trust had hoped to open the Nga Motu Marae in June this year but it has run out of funds.
Trustee Peter Moeahu said it had spent $700,000 developing the project and the coffers were empty.
“We just haven’t been able to raise the funds that we’ve needed and, as well as draining our own resources, we’ve just had to have a rethink.”
Mr Moeahu said the Te Atiawa hapu still hoped to complete the project at Nga Motu Beach near Port Taranaki.
He said funding could come from a combination of the trust and philanthropic sources.
The marae would be Ngati Te Whiti’s first in the city since the 1800s.
Last month the site was given the all-clear after an investigation found no significant contamination.