A rare bit of green space in an industrial area will turn into a "shantytown" if trees are cut down to make way for another building as planned, says a neighbouring business owner.

The 7740sq m Hewletts Road Reserve is designated by Tauranga City Council for community buildings, with several already installed around its perimeter and leased by various clubs and groups.

But plans to cut down mature Norfolk pine trees in a 200sq m section of the reserve to install another building have alarmed the owners of two neighbouring businesses.

The council sent letters to neighbours earlier this month

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