Schemes that Councils would still be able to invest in include housing and regeneration projects.
At the online meeting Cllr Pollard said the ruling was intended to prevent Councils from becoming property managers, and added: "In the post pandemic commercial property landscape this is very far from a sure thing in investment terms."
Council Leader Susan Hinchcliffe replied: "It changed how Councils can invest in commercial property. Other Councils are a lot more prolific when it comes to this.
"It is your Government who think the One City Park Scheme is a good one, that is why they are investing in it. They believe in it and think it is the right thing to do for the District.