Described as Maori, aged about 18 with long dark hair, he was wearing jeans and a blue checked top. Mr McGregor said he also appeared to have a bandanna, or an article of clothing like a T-shirt, wrapped around his face.
"There would have been some traffic on the road at that time and it is important we talk to anyone who was driving through or perhaps walking in the area at the time."
Napier Mayor Barbara Arnott said the incident was unsettling but served as a warning.
She said Napier was as safe a city as any but young people out at night needed to ensure they had companions with them.
"Of course people should be safe and feel safe in our city, but young people need to be with company, with friends."
She said for a 17-year-old to be out on their own at that time of the night was not wise and that young people going out needed to ensure they were not out alone.