It follows a $35,000 cash splash to stop in-fighting amongst elected members.
The city council says the best option to limit losses is to tear the building down.
He was airlifted to Tauranga Hospital in a critical condition.
Fishing company Sanford has confirmed 66 staff will lose their jobs when its processing plant in Tauranga closes.
"It is very unfortunate that circumstances have pushed us down this path."
It's prompted a warning to pregnant women and others at risk.
Police are asking members of the public to stay away.
A 25-year-old man was arrested on Friday.
Police believe the killings weren't related to gang conflict.