Ms Hill said the Durham St campus was valued at $39m and would provide unique study programmes that supported the region's key business sectors and drive innovation.
"It will enable us to retain more of our young people who choose to study here and attract young people from elsewhere that move here to study."
The University of Waikato had estimated about 600 jobs would be created while it was being constructed and once the tertiary campus was operational, Ms Hill said.
"Once complete, the city centre campus will see around 1000 students coming into the city centre to study, which is going to greatly enhance the area's vibrancy."
Ms Hill said Tauranga also had strong growth in residential building consents, recording a 10 per cent increase from the previous month and the second highest value over the past two years.
Growth in building consents was a strong indicator of economic growth as well as investor confidence, which was the case for the new tertiary campus development, she said.
The report showed the total value of consents issued in the Western Bay of Plenty was $20.8m, slightly over last month's $20.1m but less than the two-year high of $31.3m issued in June 2016.
Hawkins Construction will build the new tertiary campus development, which is expected to open in 2019.
Tauranga Chamber of Commerce chief executive Stan Gregec said the new campus building would be a "game-changer for the CBD".
University of Waikato senior deputy vice-chancellor Professor Alister Jones said the university would be an integral part of creating a tertiary precinct in the heart of Tauranga City through strong connections to Toi Ohomai Institute of Technology's Bongard Centre and the proposed student accommodation complex.
Toi Ohomai chief executive Dr Leon Fourie said collaboration between tertiary institutes would support regional growth. The campus received $30m of community funding from the Bay of Plenty Regional Council and the Tauranga Energy Consumer Trust, and will sit on land donated by Tauranga City Council.
JUNE 2017 SUMMARY - TAURANGA CITY
- Total consents value $105.9m, 41.7 per cent increase on May's $64.2m
- Total number of consents 275, slightly less than May's 287 but ahead of 262 consents issued in June 2016
- Single dwelling consents valued at $51.5m, ahead of last month's $46.7m
- Commercial consents valued at $11.4m, slightly over last month's $10.8m
- Government and community consents valued at $39.5m, a huge leap from last month's $3.0m
JUNE 2017 SUMMARY - WESTERN BAY
- Total consents value $20.8m, slightly over last month's $20.1m
- Number of consents 114, less than May's 131 and last year's 141 consents issued
- Single dwelling consents valued at $16.1m, ahead of last month's $12.8m
- Commercial consents valued at $541k, less than May's $940k and well under last year's $7.7m consents issued
- Government and community consents valued at $1.7m, less than May's $2.6m
