"It would benefit everybody in the area, punters and retailers alike."
King's Dairy owner Davinder Singh also supported the idea.
It would give the city a new vibe and invite more shoppers into the area, he said.
"Everybody heads over to Rotorua for diversity so it would be a good option to get more people into the city."
Kilt manager Monica Culley said the proposed revamp was a fabulous idea.
"The museum will be great for parents to bring their children to in the school holidays, they will then be able to head out to lunch, hit the park and check out the retailers in Tauranga, too," she said.
"It will just bring more vibrancy to the town centre as opposed to people always going to the Mount."
Broncos owner Glen Tuck said more green space was great, but a commercial premises would be of a greater benefit to the struggling CBD.
"Enhance the one at the waterfront first, before moving onto another [green space]."
Mainstreet Tauranga vice-chairwoman Anne Pankhurst strongly supported the initiative, which was not replicated elsewhere in the region.
"All of the amenity that is so critical to a growing city is in the city centre where they work in tandem and encourage people back into the CBD.
"There is a strong reason to house your commercial activity in the CBD, and to encourage the 5000 to 6000 people that come into the city every day for work to then enjoy their city environment, and then bring their families back in the weekend," she said.
"This alone has the ability to be the game-changer that once again returns the city to its people."
Tauranga City Councillor Bill Grainger said it was an opportunity.
"We got to have a centre heart or a centre hub for the city, a soul."
Mr Grainger also proposed Willow St become a pedestrian-only area from Wharf St to Hamilton St, which could flow through to Masonic Park and the Tauranga waterfront.
The bus stops should be placed along Harrington St, the widest street in the city, he said.
"There is opportunity, let's take hold of it."
Tauranga City Councillor Gail Mcintosh said having a museum in the city centre was the best location for it. "I know we have land up at the Elms but if we really want people to come, the city centre by the bus stops is where it has to be."
Councillor Matt Cowley said the draft sketch of the proposal looked stunning.
"It could connect the waterfront with a great civic space in the city centre."
He said they still needed to look at financial scenarios and would consult the community during the next budget process.