The block of land where Papamoa Hall once stood will return to the descendants of its original owners, following a fire that destroyed the building last year.

Smoke was seen billowing from the hall on State Highway 2, between Bell Road and Welcome Bay Road, at around 6pm on October 28.

The Papamoa Hall went up in flames on October 28 last year.

The single-storey building was completely engulfed in flames when firefighters arrived at the scene.

Following an investigation by a fire safety officer, police confirmed the fire was arson.

Detective Logan Nicholas says the investigation into the matter is continuing.

Meanwhile, the Western Bay of Plenty District Council has since been processing options for the empty site, made up of two parcels of land.

The first was gifted by the McNaughton Family to the then Tauranga County Council in 1930, to be held in Trust for the purposes of a public hall.

The second was purchased and amalgamated with the hall site title in 1969.

Western Bay Council's Group Manager Engineering Services Gary Allis says Council has decided to return the gifted land back to the McNaughtons at no cost.

'The balance parcel is going to be sold to the McNaughtons at market valuation, and the Council are currently in the process of actioning this with the McNaughtons,” he says.

Council is also negotiating with its insurance providers to come to a fair settlement on what the Papamoa Hall site was worth.

The Papamoa Hall was insured for an indemnity value of $259,000.

It was decided early on that the hall would not be rebuilt. It had not been used by the community for some time and the hall society had ceased, adds Gary.

The hall was originally moved to the site in the 1930s, and was managed by the hall committee, which made further additions and upgrades over the years.

In 1959 the trustees of the hall requested council take over the running of the hall and council agreed to accept the trusteeship.