Cheap, all-day parking is coming to Whangārei's central city.

A pay and display carpark has been confirmed for the recently demolished site bordered by James, John and Dent streets - and it's going to cost $1 or $2 for 12 hours of parking.

The site is owned by Auckland property developers The Neil Group. In early May, the site was nearing the end of demolition and the group said while it had no immediate development plans for the site, it was investigating a temporary pay and display carpark.

Neil Properties commercial manager James Rigg confirmed the developers had signed a carpark management contract with Wilson Parking.

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Wilson Parking communications manager Anne-Marie Petersen said the company will be managing the James St site on behalf of The Neil Group from Thursday. There will be about 100 parking bays at the site.

"Rates at the site will be $1 for 12 hours on ParkMate and $2 for 12 hours through the pay and display machine.

"So pull up at 8am, pay $1 on ParkMate – it expires 8pm that day."

ParkMate is a parking payment app. It notifies customers their parking session is nearing an end and allows them to be able to extend their session remotely, without having to return to their vehicle.

Meanwhile about 40 car parks in the Canopy Bridge carpark have been lost due to the start of construction on the Hundertwasser project.

Whangārei District Council roading manager Jeff Devine said the council has been planning for the loss of these parking spaces for several years.

The construction of the Railway Rd carpark was initiated in 2011 in response to the carpark to park project. The introduction of charging at the Town Basin carpark was a response to the Hundertwasser development, to change the use of the carpark to provide more short-term parking for tourists and shoppers.

"The additional 74 car parks provided in the Carruth St carpark allows for additional and overflow car parking from the Town Basin."

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Devine said the council also has plans for the rearrangement of car parking in Robert and Hannah streets to provide "an additional 30-odd parks".

The council conducted a parking occupancy survey at the Town Basin and Carruth St carparks at 9am, midday and 3pm from May 14 to May 20.

The Carruth St carpark had an average occupancy of 9 per cent at 9am and 3pm during the week and 14 per cent at midday. Those figures jumped to 26 per cent at 9am, 47 per cent at midday and 34 per cent at 3pm on weekends when charges do not apply.

In the three months from February to March this year, the council collected $77,172.70 in revenue from the Town Basin carpark and $1358 from the Carruth St carpark.

Those figures were 26 per cent and 1.4 per cent of the maximum possible revenue over that period.

Devine said the survey results show the Town Basin carpark is meeting the occupancy targets set at the time of the recent changes.

"Occupancy rates will continue to be monitored for the Carruth St carpark but at this time no changes are planned."