She said funding the redevelopment through a loan was considered appropriate given the long term nature of the asset and its intergenerational qualities.
"This would be funded through an internal loan, with servicing costs of $87,670 per annum," she said.
Napier Mayor Bill Dalton agreed with her saying it made "absolute sense" for the council to proceed with it as it had the capacity to borrow internally.
He said as the council was in a very strong financial position it made sense to spend the extra money.
"To date none of the money that is going into this project comes out of rates so this is all non-rate money its comes from reserves," he said.
"[Except for] a small amount of debt which is funded out of rates."
Councillor Michelle Pyke said the redevelopment was well worth the investment.
"It is well worth doing once and doing it right," she said.
"Two generations have been waiting for this to happen and this is also going to carry Napier City forward at least another two generations."
The driving force behind the redevelopment councillor Keith Price, said Marine Parade was an "outstanding asset" for the city.
"Marine Parade is talked about all the time and seen as the main area of Napier," he said.
"[So the] one thing that we don't want to do here is go second rate.
"By imputing the extra money that we are talking about gives us that good product and it really, really finishes that part of Marine Parade off it gives it a flow right down that area."
