Spongedrop Cakery owner Danielle Cubis said it was a bit disappointing their building would be demolished to make way for a new i-Site. But she was understanding of the council's decision.
"I think it is just because we are where the i-Site already was," she said. "That was not working and the building went empty for about two years, then it was offered to us."
Originally Miss Cubis thought the lease on the council-owned building was for five years. Spongedrop Cakery has been operating at the site for two-and-a-half years.
"Admittedly council and Tourism BOP have been amazing in keeping up communication," she said.
"They are very sympathetic about the situation. As much as I am disappointed, we do recognise that the region is growing and we are so aware that the location is ideal being so close to the port."
Miss Cubis had "no idea" where the cakery would open next.
"It is a long way away, the funding still needs to be found. We have been told mid-next year. So we are pretty happy here for now," she said.
"This will not be the end of Spongedrop."
Tauranga City Council city transformation general manager Jaine Lovell-Gadd said the proposal in the draft Annual Plan 201718 was to include $4m of funding in the budget, spread over two years, to deliver a new Visitor Information Centre at Coronation Park by summer 2018/19.
Mrs Lovell-Gadd said the investment was to be funded 50 per cent by general rates, and 50 per cent via the targeted economic development rate on commercial properties.
"Through the Draft Annual Plan 2017/18, council sought $4m with the additional proviso that Tourism BOP, supported by council, would investigate external funding options to deliver the building as per the 'iconic' concept design, which would cost in total approximately $5m.
"The $4m sought would allow for a basic design visitor centre to be built, should we not succeed in securing external funding."
Tourism Bay of Plenty and the council had already begun the process of investigating external funding options for $1m to be able to deliver the iconic building, said Mrs Lovell-Gadd. The deadline for funding was April 2018.
"We continue to work through the best ways to attract external funding, including from the government tourism infrastructure fund.
"This includes assessment for the quantum of funds to be sought."
Mrs Lovell-Gadd said Tourism Bay of Plenty was not set up to fund capital projects.
Tauranga City councillors debated whether $2.5m would be enough to build an 'iconic' i-Site building at a public council meeting earlier this week.
Two sets of costings have been provided to council, said Mrs Lovell-Gadd. She said both confirmed the full cost to deliver an iconic building was estimated at $5m.
"The $4m would allow us to build the basic design visitor centre. This basic design would provide increased services to visitors, but would not deliver the same quality of experience and community pride as the iconic version."
More work was required to assess what could be delivered, including assessments on quality and size within the new budget range, said Mrs Lovell-Gadd.
