It is part of an overall plan, which aims to create a more vibrant city centre - under way starting with the roadworks on Eastbourne St East.
Hastings mayor Sandra Hazlehurst said the site provided a fantastic opportunity for better links to the main shopping precinct, as well as new areas for performing arts in the city.
"It will greatly improve our people's city centre experience."
The Hastings City Centre Public Spaces Revitalisation Plan arises from the 2013-33 Hastings City Centre Strategy, which was supported in public feedback during the Long Term Plan Process.
$4.5 million has been set aside for investment in three key areas over the next three to four years, the Central Plaza, the Heretaunga St East Block entertainment precinct and Civic Square.
Hastings district councillor Damon Harvey said Hastings was buzzing with unprecedented upgrades of buildings and public spaces, which will create a CBD that will become a major drawcard for locals and visitors alike.
"We have made a major commitment to revitalising the Hastings City centre, there is so much going on with numerous council-led projects, as well as the commercial sector undertaking large scale projects."