A deal involving Hawthorn Football Club to build a $65m basketball stadium in Melbourne’s southeast could be on the scrap heap after delays amid revelations cross-town rival St Kilda Football club had put up a secret proposal in a bid to poach the project.

The proposed stadium with between four and six courts was to be built at the Kennedy Community Centre, the training facility and headquarters of the Hawthorn Football Club in Dingley Village, as part of broader redevelopment of the Tootal Rd site.

The stadium would be used by more than 20 basketball clubs and more than 10,000 players, alongside thousands of netball and volleyball players.

If the deal went ahead Kingston Council would front up to $20m, as well as $20m from the state government put up $20m, and a $15m federal government grant, with the Hawks pitching in $10m.

Kingston Council chief executive Peter Bean said at the October council meeting that the timing of endorsing the plan was critical to secure funding agreements from whichever party formed government following the November election.

However, a bloc of councillors, lead by Labor councillors Hadi Saab and Tony Anthanasopoulos, have delayed a vote on sending a non-binding letter of intent to Hawthorn expressing support for the partnership until the November 23 meeting – just five days ahead of the state election.

The councillors justified the delay by asking for “more information” on the proposed deal, while Cr Saab argued there was no guarantee state and federal governments would follow through on funding the project.

It comes as Mark Dreyfus, Attorney-General and federal MP for Melbourne’s southeast, confirmed in a letter to council that the federal government was on board with the arrangement.

However, due to the delay in council’s commitment uncertainty has been cast on the deal, with Kingston deputy mayor Sarah O’Donnell stating it was now more likely she would find “a unicorn in my backyard” than the council securing the “blue moon” funding opportunity to deliver the stadium.

Cr O’Donnell said the “games that have been played” in delaying the Dingley Village stadium plans would likely scupper the project before it could get off the ground, opining that an “ulterior motive” was at play.

The delay comes amid revelations St Kilda Football Club had put forward a proposal for a stadium with a comparable number of courts at its headquarters at RSEA Park on Linton Rd, Moorabbin set to tower 18m above nearby homes.

The St Kilda stadium would also include an indoor all-abilities facility for blind and wheelchair athletes.

The Herald Sun understands that the stadium proposed by St Kilda would not be able to fit on the site and would require the annexure of some adjacent parkland at Moorabbin Reserve and the clearing of trees.

Mayor Georgina Oxley said the St Kilda site had no business case, had no planning approval, and no support to build on council-owned land.

“A deferral on this matter is not going to win us anything and it makes the decision for us,” she said.

Meanwhile, the basketball community expressed frustration at the delays, with Chelsea and District Basketball Association starting a petition calling on the council to commit to building more basketball courts.

Chelsea’s general manager Kerryn Mitchell said the delays were only hurting a growing basketball community, and it was “disappointing” that councillors against moving forward with the plans did so without explaining why.

“The kids need courts,” she said.

McKinnon Basketball Association general manager Anita Ledger joined calls to stop delaying the building of “desperately” needed basketball courts.

With only two municipal basketball facilities, McKinnon’s more than 9000 participants, are forced to use 20 courts across 13 locations – mostly schools, Ms Ledger said.

“McKinnon just needs basketball courts and a home for their community,” she said.

Ms Ledger said McKinnon was the 10th largest basketball association in the state and the only one in the top 10 that doesn’t have a home, which severely limited sponsorship and commercial opportunities and its financial sustainability more broadly.

The issue of the stadium will return at the November council meeting, after a new mayor is elected on Wednesday.