THE PSNI failed to inform Newry, Mourne and Down Council that it was halting its sale of a former police station at Warrenpoint, it has emerged.
There has been fury among councillors after it learned from the press that its plans to turn the site into a community centre had run aground.
The PSNI told the Newry Reporter that "due to the uncertainty surrounding the implications of Brexit, PSNI has taken this opportunity to review the planned disposal of this station pending clarity around future arrangements".
There has been speculation that the station, which was offered for sale in 2016, could be used as a border checkpoint in the event of a hard border being re-introduced in Ireland.
The purchase deal by the council was at an advanced stage, with the local authority taking advantage of a D1 process whereby government bodies have first refusal on the sites when they decommissioned by the security services.
SDLP councillor for the area Michael Carr expressed annoyance after learning from council officials that they had still not had official word from the PSNI, but that it had been revealed to Sinn Féin in a private meeting with police chiefs.
"I would have expected this to be communicated through the proper channels, particularly as the local councillor in Warrenpoint who has been working on this for four or five years.
"This was promised to the council and we were just waiting for a telephone tower to be moved to the Harbour Authority before we could go to the next stage of that process."
Sinn Féin councillor Mickey Ruane told the BBC the council and the Warrenpoint community have been left in limbo.
"People are trying to surmise what the PSNI mean by holding it for Brexit-related concerns," he said.
"We're not sure but there is anger in the town.
"This is a much-needed facility, probably the number one project in the town - and here we are at the last minute, we've been left high and dry."
Warrenpoint Port is Northern Ireland's second largest port and handled 3.56 million tonnes of cargo in 2017, around 40 per cent of which either originated from or was destined for the Republic.
It is unlikely that it has the capacity to carry out on-site customs checks in the event of a hard border.
Its CEO Clare Guinness said it wants "to see frictionless post-Brexit border arrangements that allow trade to continue to flow smoothly and grow over time".
"While we are actively formulating plans to deal with whatever scenario results from the Brexit negotiations, the length to which those plans can be developed depend on receiving a greater level of clarity from those involved in the talks," she added.
