Mr Short said a retail precinct was always part of the subdivision's master plan and he was excited to be able to proceed.
"It's what's going to change things here for me at Coast. It really just gives us an identity. It gives us some construction at the front of the site and it will bring people into the development."
Mr Short had not spoken with potential retailers but hoped the cafe would become a drawcard.
"This time next year the cafe at Coast Papamoa beach will provide the best food, the best coffee, and places for the kids to play. It'll be a fresh, stylish beach cafe," he said.
The Bay of Plenty Times Weekend spoke to nearby residents who said they welcomed the shops.
Steve Ryan, who lives about 200m from the proposed centre, said: "Bayfair is a pain, the parking is not that great and it always seems to be pretty busy, so [shops at Coast] would be convenient for me."
Another change planned for the subdivision was the removal of the front gates and the handing over of responsibility for the internal roads to the council.
Council road corridor manager Bruce Galloway said it was "fantastic" the area was opening up.
"This is a joint move between council and Coast Papamoa Beach and means progress for the area in terms of providing a link with the main road, the interchange and the new Tauranga Eastern Link when it opens up," he said.
Coast Papamoa Beach is being developed by Frasers Papamoa, and will eventually be home to about 2000 people living in a mix of stand-alone houses, townhouses and apartments.
The company will this year release a new range of architecturally-designed houses priced at $600,000.