Heritage New Zealand has issued an authority for the demolition work.
Ms Chappell said the regional council had been working with Whakatane District Council on the future plans for the site, and had donated some of the interior fittings which may have some historic value to the Whakatane Museum.
"We want to ensure the sites are resurveyed and marketed in a way that encourages a development that's complementary to the community's vision for the future of the Whakatane CBD."
Whakatane District Council business development manager Roslyn Barlow said the proposed sale of the Commercial Hotel site offered a great opportunity for sympathetic development of the site.
"We have had a number of inquiries about potential development sites in the CBD and we'll be working with the regional council and its agents to ensure that the future development of this highly strategic location contributes to the achievement of our town centre plan," she said.
Demolition is expected to take place in June.
45 The Strand (Corner pub)
- Erected for Bank of New Zealand in 1917
- Included manager's accommodation on first floor
- Two-storey masonry building - corner sites and classical styles were traditionally chosen for banks.
- 1939 became part of the New Commercial Hotel
- Major landmark on the corner site - visible from the main wharf and centre of trade at the time it was built. It was designed to make an impression of solidity and reliability, as befitted a bank.
39-43 The Strand (Art Deco building)
- Existing hotel built as the New Commercial Hotel in 1939.
- Architects Birr and Mirfield from Gisborne.
- Has been vacant since purchased by the regional council.
- Fire and earthquake danger to neighbouring heritage building.