Tauranga City Council has voted to proceed with the construction of the Wharf St upgrade.
In a council meeting at the end of last month, elected members sought commitment from Wharf St businesses for a funding arrangement to support the development.
Today it was announced they had received a commitment from all current Wharf St hospitality businesses to take up Licence to Occupy arrangements and associated fees.
The $5.56 million budget for the project includes $320,000 which has already been spent on design work.
It will also fund contingency and risk to ensure that the project can be delivered within budget.
The Wharf St upgrade will create an appealing space in the city centre and replace infrastructure that is due for servicing.
For the next steps of this project, council will work closely with the businesses to manage disruption during construction.
Work on Wharf St is scheduled to begin around Easter next year.