Tauranga Mayor Greg Brownless said the onus was now on Tourism Bay of Plenty to raise another $1m from a government tourism infrastructure fund to "up-spec" the building.
"There were a number of councillors who would have been prepared to put more in. I think the original figure was $4m, so there was a bit of debate about what you could actually get for $2.5m, plus the $1m, and whether it would be enough or not."
The initial preferred site for the visitor centre was on the Maunganui Rd/Nikau Cres corner of Coronation Park.
But yesterday,councillors favoured moving the location back to 10 Salisbury Ave, where Spongedrop Bakery currently stands.
Mayor Brownless said a visitor centre at the Mount had been needed for some time.
"There used to be one there, so we are going to reinstate that probably at the same position that it used to be.
"So once again visitors will be able to get information on attractions and things that they can do here and hopefully that will encourage them to spend a bit longer in the CBD and support the businesses that are involved in tourism and benefit from them."
There was debate around the word "iconic", with some councillors believing an iconic building could not be built for only $2.5m.
Councillor Gail McIntosh said $4m was "over the top". She said $2.5m was sufficient funding. "I don't think the building needs to be iconic, it just needs to be modern."
Cr Steve Morris said there was some discomfort around the original cost which was reinforced by a number of submissions throughout the process and speaking with residents in the community.
"The number, in my personal view, just didn't pass the sniff test. By putting in the number of $2.5m it does allow scope to apply to this tourism fund.
"I also had to have a look at projects across the city which are going to have an impact on our residents and add vibrancy to our city," said Morris.
"To fund the repairs on Mauao, which is some $2.2m, in terms of vibrancy in our city that is crucial.
"I think there is more bang for your buck to add vibrancy around the city with that proposal [of $2.5m]."
Councillor Kelvin Clout said $2.5m was not enough. "If we want to erect a basic shoe-box design then you are guaranteed to get that if you cut the budget."
Clout suggested bumping the budget to $3.5m. "That industry deserves a much more attractive info centre than $2.5m."
Councillor Larry Baldock also did not support the motion. He believed $2.5m would not be enough. He disagreed that Tourism Bay of Plenty should have to help fundraise.
"I do not think that is the right thing to do."
Kewpie and Bay Explorer owner Brandon Stone told the Bay of Plenty Times Mount Maunganui needed an information centre and he was glad the council had approved funding.
"We never should have taken away the one that was there, we need one big time."
Hopefully $2.5m was enough to build an information centre that was an attraction in its own right, he said.
"I really hope they do a good job building it. We need one like Rotorua - they have amazing numbers of people going there not just for info about accommodation and activities but to the building in its own right."
Mount Mainstreet manager Ingrid Fleming said she did not want to comment before knowing more about why funding had decreased to $2.5m.
However, her initial reaction was disappointment, and she said to achieve a building as was proposed would need decent money.
Royale Coachlines' Geoff Rawlings said an information centre was needed and Salisbury Ave was the best location.
"I didn't realise they would scale the funding back so much but anything will be a positive investment for the region."
- Additional reporting by Allison Hess
