"We have been in Tauranga's CBD for around 50 years and we believe that the CBD has an exciting future. We're backing that belief with a major investment," he said.
Tauranga Chamber of Commerce chief executive Stan Gregec said it was another ''massive shot in the arm for the CBD''.
''This will be a game changer - not just for retail but for more people living in the CBD.
"Adding to the other city centre developments we know about, this will give a huge boost to our downtown and add something new and exciting.
"This is a huge development by Tauranga standards, and represents a giant leap from what we've already got and what's been done before.
"It means that both ends of the CBD will have their own distinctive flavours, and give people more reason to stay longer in the city centre."
Downtown Tauranga spokeswoman Sally Cooke said it would be another significant and transformative development for the city centre.
''It will add to the offerings in the city centre from a retail perspective, at the same time it will contribute to our need to have more people living and working in the CBD.
''With more people living in the city centre and more retail offerings, the businesses in the city centre will continue to benefit from the increased foot traffic that developments like this will bring.''
Tauranga Mayor Greg Brownless said his conversations with the developers indicated a "potentially impressive building" that shows "a strong commitment" towards the growth of the city centre.
"In fact, I believe the development will exceed expectations simply because of the size of the site and the commitment of Farmers, a privately owned New Zealand company, to increase their presence in downtown Tauranga.
"Farmers has held a prominent spot on the corner of Devonport Rd and Elizabeth St for many years. A project of this size will have a positive impact on the economy and the vibrancy of our city.
"It will surely raise the bar for city retail experiences."
Priority One chief executive Nigel Tutt said the redevelopment was "huge".
"This is a major project that will not only bring economic benefit to the city centre, but also vibrancy and confidence for businesses and shoppers alike.
"A strong retail offering is an important part of any city centre, and it's great to have an experienced, long term-focused investor with a strong brand like the James Pascoe Group seeing the value of Tauranga's city centre."
Elizabeth Properties Limited company expects to lodge consent applications before the end of this year. An expected opening date had not been finalised.
Other retailers expected to move into the building include Stevens Homeware, Whitcoulls and Pascoes the Jewellers.
Farmers would move to Tauranga Crossing at Tauriko during the development.
The news comes hard on the heels of plans released in July for a $50m skyscraper including retail, offices and luxury apartments at 2 Devonport Rd.
By the numbers
- $100+ million redevelopment
- Two levels of retail
- 8000 square metres retail
- 70 to 90 high-end apartments
_ Pool tennis court and garden
- Close to 400 carparks
