Ms Somerville said the Horotutu project - in which volunteers turned an unsightly car park into a heavily used public space - was "amazing", but what inspired her most was the diversity of plans chosen for Horotutu.
"That such a small town can yield such creative, beautiful ideas is amazing. Instead of a dusty old car park, Paihia now has an attractive seaside park with a public piano, green space and many more projects on the way. It's something locals, and especially those who pitched in by providing helping hands, cheap labour or materials and planning skills, can all be proud of," she said.
Much of the money required for the transformation came from Focus Paihia's op shop.
The winners will be named at Victoria University's Memorial Lecture Theatre tonight followed by an awards dinner at Te Papa. Presenting Focus Paihia's entry will be Sarah Greener and Grant Harnish along with Deputy Mayor Tania McInnes.