A museum and an arts hub have been put forward as two ideas for the current site of the Tauranga City Council building if the council decides to demolish part or all of the civic building.

Councillors considered a report this week outlining the proposed next steps in deciding the future of the Willow St civic campus.

The project follows the discovery of stachybotrys (black mould) in parts of the campus in late 2014.

Chief executive Garry Poole said a project steering group had been established to look at options for council accommodation as well as identifying and assessing other opportunities.

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"We're not yet in a position where we can define these opportunities, but they may include consideration of public space, public amenities, car parking and so on," he said.

Robert Harris Cafe franchise owner Susanne Irwin suggested something community-related would be good for the area.

An arts hub, a museum or something else arts or culture related which included Tauranga's heritage would be ideal, she said.

Glenn Tuck, chairman of Mainstreet, said: "The city hall plays a huge part in any CBD, particularly around the civic centre, and this would be that opportunity to lead the city development with an exciting and dynamic campus.

"We are aware of an option that if followed through with could alter the face of the city, increase the much needed green space, and act as an agent to link through from The Strand to the estuary."

Tauranga City Council chief executive Garry Poole said the group would ensure all strategic opportunities were considered.

"Whatever our elected members decide will represent a significant investment, so it's important we use a high-quality process in order to get the best possible outcome for our city."

Mr Poole said the wider community would be invited to contribute to the development of ideas.

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The story so far

* More than 500 Tauranga City Council staff members were relocated from the council chambers earlier this year.
* Toxic black mould was found in the building in late 2014 after a staff member had become ill.
* Stachybotrys or black mould was found after testing and now a full-scale survey of the
building is under way.