Police will not assist in removal of contentious bonfire in Belfast
But the PSNI confirmed on Thursday that the risk of the bonfire was deemed 'lower and more manageable' than intervention.
Concerns have been raised over the bonfire, which is on a site which contains asbestos and is close to an electricity substation which powers two hospitals.
Meanwhile, police said they are investigating the placing of effigies of migrants in a boat on a bonfire in Co Tyrone as a hate incident.
An Irish tricolour flag was also placed on top of the bonfire.
Earlier, Church of Ireland Archbishop of Armagh and Primate of All Ireland John McDowell described the effigy of as 'inhuman and deeply sub-Christian'.
The bonfire in Moygashel, on the outskirts of Dungannon, is set to be lit late on Thursday night.
In a statement hours before it was due to be lit, police said they have received a number of reports about it and the material place upon it.
'Police are investigating this hate incident. Police are here to help those who are or who feel vulnerable, to keep people safe,' they said.
'We do this by working with local communities, partners, elected representatives and other stakeholders to deliver local solutions to local problems, building confidence in policing and supporting a safe environment for people to live, work, visit and invest in Northern Ireland, but we can only do so within the legislative framework that exists.'
The structure in south Belfast appeared to have been lowered slightly on Thursday evening, which the bonfire builders described to the BBC as an 'olive branch to those concerned'.
The High Court in Belfast heard two applications for judicial review concerning the bonfire.
One challenged its siting while the other questioned a move by a Belfast City Council to suspend the call-in mechanism to intervene before voting to send in contractors to remove it.
The second challenge was taken by loyalist activist Jamie Bryson, however Mr Justice O'Hara queried why DUP councillors had not taken the action.
Both cases were adjourned following news of the police decision not to support the removal of the bonfire.
The city council committee voted on Wednesday to send contractors to remove the towering pyre on Meridi Street off the Donegall Road.
The PSNI stated that the decision had been taken not to assist a request from the council for the removal of material.
A spokesperson said: 'Following comprehensive engagement with all relevant stakeholders, an evidence based assessment, and taking into consideration all of the risks associated with the removal, we have determined that police should not assist the proposed actions of Belfast City Council.
'This decision, which involved an examination of the legality, necessity and proportionality of the police involvement in the proposed action by Belfast City Council.
'This involved carefully balancing potentially competing statutory and human rights obligations.'
The statement added that following a meeting with stakeholders, the risk of the bonfire was deemed 'lower and more manageable' than intervention.
'After receiving a formal request for assistance from Belfast City Council the Police Service of Northern Ireland chaired a multi-agency Tactical Coordination Group meeting on Wednesday evening.
'The purpose of this meeting was to gain shared situational awareness and a comprehensive understanding of the actual risks associated with this bonfire and the council's proposed action.
'Amongst those present were the Northern Ireland Environment Agency, Belfast Health and Social Care Trust, Northern Ireland Electricity, Northern Ireland Fire and Rescue Service and Belfast City Council.
'During this multi-agency meeting all partners considered the environmental risks associated with the asbestos on the site, the risks related to the electricity sub-station as well as the risks to public safety on a site occupied by members of the public, including children.
'The consensus of the meeting was that the risk of the bonfire proceeding as planned was lower and more manageable than the intervention of contractors and the proposed methodology of dismantling the bonfire.
'The Police Service will continue to work with partners and communities to manage the remaining risks surrounding this bonfire.'
There are around 300 bonfires set to be lit across Thursday and Friday night ahead of the Orange Order's July 12 parades on Saturday.
The traditional fires are lit ahead of the main date in the parading calendar of Protestant loyal orders, the Twelfth Of July.
While most of the bonfires pass off without incident, several have become the focus of contention due to the placing of flags, effigies and election posters on the structures before they are ignited.
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