(1) Upon completion to the satisfaction of the Minister of Marine of the reclamation of the whole or any part of the area described in the Schedule the Governor-General may by Order in Council vest in the Corporation of the said borough, for such purpose or purposes of enjoyment or recreation as he thinks fit, any land so reclaimed.
(2) All land vested as aforesaid shall, unless otherwise provided in the Order in Council vesting the same, be held by the Corporation subject to the provisions of the Municipal Corporations Act 1920, but leases of land subject to the last-mentioned Act may be granted under the Public Bodies' Leases Act 1908, for the purposes of which the Rotorua Borough Council is hereby declared to be a leasing authority:
provided that save in the case of a lease granted pursuant to the next succeeding subsection no lease of any such land shall authorise the erection thereon of any building other than a building necessary for the full use of such land for the purpose or purposes for which it was vested as aforesaid:
provided further that no such building shall be erected save on a site and in conformity with a design, plans, and specifications approved by the Council on the advice of the Town-planning Board.
(3) Notwithstanding anything contained in the foregoing provisions of this section, the Council may grant to the Board of Maori Arts a lease for such term at such rent and subject to such conditions as may be agreed upon between the Council and the Board of any land so vested as aforesaid adjoining land occupied by the Board.