TECT has agreed to pay the market rate for a 4800 sq m site in Tauranga's Historic Village on which it plans to build a centralised hub for not-for-profit community organisations.
The city council yesterday received an assurance from TECT chairman Bill Holland that it would pay market value for the site.
He was responding to councillor Catherine Stewart's concerns the council was proposing to go out for public consultation on a project without telling people the sale price.
The $5 million-$10 million project, driven by community funder TECT, involves a new two-storied building to house cash-strapped community organisations in a centralised administration facility. It was proposed that the city's other main funding organisations would also be based in the building.
Mr Holland hoped the final sale price would take account of drainage costs incurred by TECT to make the swampy site suitable for the building, which, he said, would fit the character of the village.
"We don't want something that looks brand spanking new in the Historic Village."
The council unanimously agreed in principle to support TECT's proposal to buy the site, with proceeds from the sale earmarked to be spent on the village.
Mr Holland said the hub would be "absolutely special". Not only would it improve the efficiency of community organisations, it would enhance the village. He assured Cr Stewart that although there would be less green space in the village, they would hopefully reconfigure what remained so it was more usable, particularly in winter.
Cr Stewart, who has been involved with the village for eight years, was pleased the hub would bring more people to the village.
TECT's Community Hub Project Timeline
Presented to confidential council briefing last month
Approved in principle, yesterday
Final decision expected February 2016