Hamilton Mayor Andrew King says the purchase of the sites on Victoria St, seen here will allow council to link the city with the Waikato River.

A decision by council to buy a suite of riverside properties to open up Hamilton's inner-city to the river has divided city politicians.

Four prime buildings on Victoria Street have been bought by the Hamilton City Council, which paid $2 million more than the most recent market valuation.

The move is part of a long-term vision to develop a central city river park.

Hamilton Mayor Andrew King said the buy-up is a crucial step in connecting Victoria Street to the Waikato River while opponents say the move could financially hamstring the city.

The four buildings are on the Waikato River side of the city's main street, south of the existing Victoria on the River park.

City councillors voted to buy the properties during a series of closed door meetings about a month ago.

TOM LEE/STUFF King said the purchase was a strategic move for the city but councillors were split on the deal.

A decision to buy two of the four buildings split councillors, with King using his casting vote to push the decision through.

The properties are just north of the proposed site for the new Waikato Regional Theatre.

The four buildings cost ratepayers $6.49 million. The properties have a current market value of about $4.3m.

TOM LEE/STUFF The tenants will provide an income stream while council develop plans to incorporate these properties into an expanded riverside public plaza, mayor Andrew King said.

King said the buildings' purchase price reflects the strategic value of the sites.

"The value for the city is more than just money, it's about ensuring future generations and future councils have options," he said.

There are no immediate plans to develop the site, King said, with rental income expected to largely offset the cost of purchasing the properties.

SUPPLIED The newly purchase site is next to the Victoria on the River park.

"There's no secret that I wanted to buy the whole block down to the theatre but this is going to take us halfway there.

"Without control of this site, the opportunity to link the central city to the river could have been lost forever. This is delivering on decades of desire to open up the CBD to the river."

Cr Angela O'Leary said ratepayers who submitted on council's draft long-term plan didn't want the purchase to happen.

The inner-city park was another project pushing council's financial limit to the maximum over the next decade, she said.

She wouldn't have supported it even if council paid market value, because Hamiltonians would probably have preferred a small rates reduction or more destination playgrounds.

Cr James Casson said the $6.49m purchase price was a lot of money for something the council didn't have a plan for.

"There's no design, there are no plans, there's no real date to start anything," Casson said.

And the $6.4m spent to date would be just the tip of the iceberg, he said.

Stark Property's Matt Stark said he sold 260 and 266 Victoria Street reluctantly.

He'd had plans for a Riverbank Lane-type development on the other side of Victoria on the River.

"But, as I said when we were approached by council, we're not the type of people to stand in the way of a greater vision of the city," he said.

"If the council turned around and said hey, we've changed our mind and we don't want these buildings, I would buy them back in a heartbeat at the same price, and more."

Number 260 was bought in March 2016, he said, and passed on to council at cost, while 266 was bought at a liquidation sale in October 2017 and Stark said he felt it was sold to council at significantly under market value - despite a valuation saying the contrary.

Stark's dealing with the Hamilton City Council came under the spotlight earlier this year when it was revealed he and property developer Leonard Gardner had met with council chief executive Richard Briggs.

The closed-door meeting was to discuss the council's interest in purchasing properties along the eastern stretch of Victoria St, between Embassy Park and Victoria on the River.

Following the meeting, Stark and Gardner formed the company VOTR 2 WRT Ltd.

The pair said the purpose of the joint venture was to purchase properties along the site council had expressed interest in.

A subsequent Audit NZ report into Briggs' discussions with Stark and Gardner found Briggs' actions were above board.

King said Gardner was not connected to either of the two vendors.