Tauranga City Council this afternoon agreed to sell a 5000sq m section at the top of the Historic Village for the TECT Community Hub to be built.
The hub will house community organisations, targeting not-for-profit groups.
TECT chairman Bill Holland said the building would be of vital importance to the Historic Village with events such as mini-conferences being held in the current village buildings.
He said they were consulting to get the design of the building as close as they reasonably could to something that would be acceptable to everyone.
As part of the project TECT would solve drainage issues at that end of the village.