"Nothing's set in concrete," he said. "These are decisions that will be made by council but we're looking at the possibility of shifting the library down to the bottom of Emerson St.
"Shifting the library down there will liven up that area, and revitalise that area of Napier."
Clive Square and Memorial Square are located at the bottom of Napier CBD, and are divided by Emerson St.
Clive Square was included in the original 1854 town plan, and currently contains fountains and gardens.
Memorial Square houses a cenotaph commemorating those who died in World War I, as well as council owned community rooms - which have been closed due to structural issues.
Mr Dalton stressed the entire plan was still in its early stages. However it was being considered as moving the facility would leave space in the library building, allowing them to "consolidate the whole of the Napier City Council into the one building".
This would then free up the current council site for other uses - such as a multi-million dollar hotel development.
Council chief executive Wayne Jack has previously said if this plan did eventuate, the council would not pay for the hotel - expected to cost up to $40 million.
The council is currently completing earthquake strengthening assessments on the civic building housing their offices, and it also needed significant renovations.
There was $7.5m budgeted towards renovating this which could be used to relocate the offices.
Boosting tourism and "activating" the Napier CBD were touted as the reasons behind the development.