Tauranga City Council this afternoon agreed to sell a 5000sq m section at the top of the Historic Village for the TECT Community Hub to be built.
The hub will house community organisations, targeting not-for-profit groups.
TECT chairman Bill Holland said the building would be of vital importance to the Historic Village with events such as mini-conferences being held in the current village buildings.
He said they were consulting to get the design of the building as close as they reasonably could to something that would be acceptable to everyone.
As part of the project TECT would solve drainage issues at that end of the village.
Councillor Leanne Brown said it meant a poorly drained piece of ground would be made more useable more often.
Councillor Rick Curach said it would bring activity into the area because it certainly needed it.
It would meet most people's desires for a better fit once the building was in place and 99 per cent of people would be happy with the end result, he said.