A revamped Horny Bull Cafe & Bar will move back to the same site and have outdoor seating and dining on The Strand and alongside Masonic Park. Glass sliding doors will be built down the length of the building and open up to the park.
The owners of Como Cucina and Buddha Lounge have decided not to take up new leases in the new development. The other spaces in the old building are presently empty, with Soho Restaurant closing in May 2011 and Dollar Save shop moving out just before Christmas.
Most of The Strand buildings have to be upgraded or re-developed to meet the new earthquake safety requirements. Tauranga City Council last year named 110 buildings in the central business district that required strengthening work.
Duarne Lankshear, Priority One's city centre project manager, predicted a lot of the work will be done in the next two to 10 years.
"You will get a combination of some buildings being upgraded and some starting again [on The Strand]. Sometimes it's good to let various sites evolve in their own unique way," Mr Lankshear said.
"What you'll see is a revitalisation of the space and the Redline development is a significant catalyst. Stage one of the waterfront re-development, the boardwalk and green space between Spring St and Wharf St, will be completed by June/July this year and this will further enhance The Strand as a destination.
"Masonic Park is going to get an active frontage and the development will attract new tenants and good long term leases. It's all part of the on-going vitalisation of the city centre, and I think The Strand will remain a hospitality precinct."
At the northern end of The Strand, JWL Investment is planning to transform the block involving Willow, Harrington and Hamilton streets into a five-level office tower, cafe, restaurant and retail complex with two levels of carparks.
The $40 million project takes in the area occupied by City Markets, Tauranga Central Backpackers, Play Nightclub and Grumpy Mole Saloon.
Hamilton-based Mr Scott, who has operated in Tauranga for 12 years, has secured four of the five tenants for his new 1485sq m building designed by award-winning Noel Jessop.
Mr Scott bought the land in November from the Tauranga-born brothers, William and Campbell Reynolds who now live on the Gold Coast in Queensland. They decided not to press ahead with their own development plans.
Zaggers, operating in Chapel St, will be opening their second licensed cafe alongside the Horny Bull and will also use the space upstairs for conferences and corporate functions.
Redline Holdings is negotiating with two prospective tenants for a bar at the back of the building that will have a courtyard and open up to Masonic Park.
The remaining 245sq m upstairs above the Horny Bull is not yet leased, and Mr Scott would like to see the space filled by an upmarket restaurant or A- grade offices.