Professionals Tauranga real estate part-owner Paul Billinghurst said he felt a liquor ban would have been good because it would give police "more teeth" in future incidents.
However, he was not dissatisfied with the response from the council.
"We no longer have an issue. They've done a fantastic job. I'm impressed," he said.
Billinghurst said he raised his concerns at a second council meeting several weeks ago in which the issue was discussed. From this, commissioners instructed staff to take what action they could to address and resolve the matter, he said.
Billinghurst said the next day and every day afterward police were there moving people on. He also received calls twice a week from the council checking to see if everything was okay and whether they could help.
"We've fixed the immediate issue from my point of view, that's great. But there's that greater underlying issue of homelessness as a business owner. We don't have customers anymore saying they don't want to come in to see us because they're too scared.
"Personally, I would've liked to have had a liquor ban. It would give police more teeth if anything does happen in the future. But I understand the council needs to tick the boxes in case they're challenged."
A 12th Ave resident, who would not be named, said the gatherings were intimidating but they were gone now and she was grateful.
"There was an incident involving the police a few weeks ago. They haven't been there since.
"So at the moment it's solved. We are feeling quite relieved. They used to sit in front of the footpath with their stuff spread everywhere, all around the place."
Another resident, who also would not be named for fear of retribution, said she did not feel safe when the "homeless" people were there. She felt safer now but still wanted a liquor ban to help prevent potential future problems, she said.
The report showed Western Bay of Plenty police reviewed the evidence of the 12th Ave concerns and concluded: "There is no demonstrable link between alcohol and offending in and around Twelfth Avenue, as a result, police will not be in a position to support the imposition of a liquor ban in that area."
Police were unable to comment on the incident referred to by residents.