Mr Cooney said issues with building foundations on the site and securing enough tenants had put a stop to the plans.
He was also appointed to spearhead the development of an internationally branded hotel on Tauranga City Council land, opposite Baycourt.
"We were looking at one and we have put a proposal in recently. It didn't work due to financial ramifications with the respective hotel chain ... We're in talks with someone at present but it's very, very early days."
He says there is still a lot of work to be done to revitalise the city centre.
Even so, city leaders are confident it is just a matter of timing.
Tauranga Chamber of Commerce chief executive Dave Burnett is hearing mixed reviews about the state of business in downtown Tauranga but he expects things to pick up as other developments go ahead.
Priority One chief executive Andrew Coker says there is more genuine interest in businesses wanting to move into the city centre, including people moving into co-working spaces.
I guess the good news is that people are aware of the issues being faced in downtown Tauranga and those people are the ones trying to rectify it.
It would be great to hear more positive things from inner city retailers and businesses, but I think it is something everyone needs to take ownership of to ensure the city centre thrives.