Thirty-eight new off-street carparks will be created by the demolition of Tauranga City Council-owned buildings opposite the Cargo Shed in Dive Crescent.
The council's city transformation committee yesterday approved the $287,000 demolition of the old buildings and development of the carpark.
It left two old leased buildings between Dive Cres and the railway line in the way of the future development of the area.
The buildings occupied by Iron Design and Fixation Coffee were subject to an earthquake-prone building notice whereby they had to be strengthened or demolished by 2021.
The carpark should be ready for use by January next year.