Councillors in Silsden are at loggerheads over who gets to spend £25,000 of cash given by the police.
Bradford Councillor Andrew Mallinson has demanded the money is put towards improvements at Silsden Town Hall.
But town council chairman Chris Atkinson insists the money should be spent on a community facility at nearby Wesley Place.
Coun Atkinson, the Silsden mayor, claims “possession is nine-tenths of the law” and refuses to hand over the cash.
West Yorkshire Police gave the £25,000 in 2005 for a new police and community contact point at Wesley Place.
Bradford Council held the money for six years, then passed it to Silsden Town Council to provide a community facility.
In June Bradford initially threatened legal action against Silsden Town Council, demanding the money be returned or spent.
Coun Atkinson said Bradford was content to leave the money alone while the two councils talked.
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