Rotomā No. 1 Incorporation chief executive Neville King said the $4m consent was for a "completely new" modern-day commercial build, with two levels of office space and ground-floor retail.
The commercial building on Arawa St was part of a 13-storey hotel planned at the back of the site.
"Our decision to build pre-Covid was premised on a number of other projects planned within the Rotorua CBD such as the recently developed Pullman hotel, the lakefront developments and the Waiora Spa that is currently under construction.
"We hope to add to the vibrancy of our beautiful city and lift the quality of the buildings in the CBD."
King said the previous building was taken down just before the latest lockdown.
He expected the commercial build would create about 40 to 45 construction jobs and about 120 for the hotel development.
While it was hard to say when the project would start, King said the "best-case scenario" would be early next year.
Rotoma No.1 Incorporation chief executive Neville King in front of a section of Arawa St which is set to be redeveloped. Photo / NZME
A consent valued at $500,000 was also issued in July for the internal fit-out to Taco Bell by the old Texas Chicken on Maisey Place.
A spokeswoman for the fast-food outlet said they were unable to give further details about the new Taco Bell opening in Rotorua later this year.
Meanwhile, a consent valued at $2.5m was also issued for alterations to Bunnings on Biak St.
Bunnings area manager Nick Wren said small upgrade works were planned for the Rotorua store.
Wren said the planned upgrades included building new canopies over the bagged goods area for weather protection and building materials/landscape yard.
The public bathroom wouldl also be upgraded, as well as installing energy-efficient LED lighting throughout the store and roller shutter doors at the entry and exit to the timber yard, he said.
"White cladding will also be installed at the store's entry to improve the look and feel of the foyer."
These works were expected to be completed at the end of 2021.
Rotorua Lakes Council deputy chief executive of district development, Jean-Paul Gaston, said it was "positive to see continued investment in Rotorua, including a major building consented for the inner city."
Rotorua building consents - July
Total value of commercial consents: $9,378,500 Total value of residential consents: $7,329,983 Total number of residential consents: 82 Total number of commercial consents: 17
July's top 10 commercial building consents in terms of value:
1186 Arawa St New commercial building $4,000,000
74 Biak St Alteration to Bunnings $2,585,000
3057 Broadlands Rd Install firewater and stormwater tanks $760,000
154 Alamein Rd New industrial building $500,000
5 Maisey Pl Internal fitout for Taco Bell $500,000
7 - 15 Monokia St Additions and alterations $200,000
13 Kingdom Dr Internal fitout $200,000
29 Pererika St Relocatable classroom and alteration $149,500
1108 Pukaki St Internal fitout to tenancy 1 and tenancy 4 $100,000
1167 Fenton St Internal alterations to north end office area $100,000
