Strategic planner Andrew Mead said the height was more appropriate next to a business zone than in a residential environment.
Bluehaven had started work on some early concepts for the Town Centre, with a larger residential catchment the most important thing for development of the centre, he said.
A key element was when development would start of Te Tumu, the farmland down to the Kaituna River which would be opened up to housing once Wairakei was nearly full. "It was still some years away."
Councillor Bev Edlin said no one would be significantly affected by 17.5m building heights. "It is a very positive move and a good use of the land."
Councillor Steve Morris said it would probably be the last Special Housing Areas for Tauranga. He said it would also help the case to construct the $20 million Te Okuroa Drive. "In a strange kind of way, approving this secures Te Okuroa Drive."
Mayor Stuart Crosby said Te Okuroa Drive would be finished by the time the Special Housing Areas came on stream around 2018. He said the council was securing the last lot of land to extend Te Okuroa Drive.