Stage one focused on improving the basic infrastructure and will see three kilometres of water, sewer and electrical reticulation installed.
"It will be like a giant artery through the site that will provide power, water and sewerage to the front of the property, which will then connect back to the main grandstand area."
New perimeter fencing will be installed along with four movable shower and toilet blocks.
President of the A and P Society, Richard Chambers, said this master plan will better serve the needs of users and the community.
"In developing this plan we are very thankful for the financial support of Lowe Corporation and Bostock New Zealand which recognised the importance of the Showgrounds to the region and the need to have a vision for the future," Mr Chambers said.
Alongside these two local businesses both the Hastings District Council and Napier City Council have given their support.
Deputy Mayor Sandra Hazlehurst said the venue had been an important part of the Hastings event calendar for years so to provide better infrastructure was a fantastic step in the right direction.
"The region will be able to host larger events alongside events we already hold such as Horse of the Year, the wine awards and edible fashion awards. We are excited about supporting more events based in Hawke's Bay."
Napier Mayor Bill Dalton said although the Showgrounds are situated in Hastings, the council was delighted to be a partner, as it saw the benefits the project had for the whole of Hawke's Bay.
"We are delighted to see the A and P Society's courage to undertake development like this that will benefit the entire region," Mr Dalton said.
This project was a great example of what can be achieved when a whole community gets behind something, Mr Linn said.
"We are now looking to the next stages of the redevelopment and are really interested to talk to those who share our desire to see the Showgrounds realise its full potential."
Stage two, which is set to start next year, will focus on a solution around superior horse accommodation and future-proofing a venue for the weekly farmers market.