The Tauranga City Council proposes to demolish its civic administration building and library in Willow St.
It plans to move its staff into a to-be-developed leased building in the medium term, and rebuild the library as part of an estimated $47m "civic amenity building" in Willow St.
The commissioners have approved the negotiation of lease arrangements for a new administration hub on Devonport Rd.
It will be developed at 90 Devonport Rd, subject to long term plan community feedback and final decision-making.
After development proposals were shortlisted and analysed, the council chose a preferred partner - Willis Bond & Co - for the project, which will allow it to bring together its administration activities in a central location.
Council staff are currently spread across buildings in Willow St, Spring St and Cameron Rd.
Commission chairwoman Anne Tolley said there were nine proposals, three of which were evaluated on location, lease terms, financial impact, building specifications and assessed risk.
She said expert property advice highlighted that Willis Bond & Co. would provide the best overall outcome.
The council's chief executive is now responsible for negotiating a detailed lease arrangement.
"Provided the outcome meets our expectations, we hope to see our organisation under one roof in about three years' time."
She said the move bringing administration staff together in one building was long overdue and would deliver efficiencies worth at least $1 million a year.
"The location is also strategically important, as it has the potential to activate a part of the city centre which has been in decline in recent years.
"In conjunction with the new Farmers building, this development would help reinvigorate the southern part of the city centre, encouraging new investment in retail and commercial activities."
Last week, the commission also agreed to demolish the current council building and central library on the Willow St site, making way for the construction of a new civic amenity building.
This would incorporate a library and public gathering and research spaces, at an estimated cost of $47 million. The decision will be up for consultation through the draft Long-term Plan process.
Willis Bond & Co is known for its award-winning developments, recently taking the top architecture award for their Wynyard Central apartment development, and a number of commercial property awards for their work on Wellington's PwC building, the council said.
Managing director Mark McGuiness said the company is delighted to be selected.
"We greatly value our relationship with the council and look forward to finalising the details of this landmark project, to share with the community."
The council is the owner of the site which is the subject of a conditional sale and purchase agreement with Willis Bond.
The location and fit-out costs related to the proposal will also be included in the city's draft long term plan, for community feedback.