TECT has agreed to pay the market rate for a 4800 sq m site in Tauranga's Historic Village on which it plans to build a centralised hub for not-for-profit community organisations.
The city council yesterday received an assurance from TECT chairman Bill Holland that it would pay market value for the site.
He was responding to councillor Catherine Stewart's concerns the council was proposing to go out for public consultation on a project without telling people the sale price.
The $5 million-$10 million project, driven by community funder TECT, involves a new two-storied building to house cash-strapped community organisations in a centralised administration facility. It was proposed that the city's other main funding organisations would also be based in the building.
Mr Holland hoped the final sale price would take account of drainage costs incurred by TECT to make the swampy site suitable for the building, which, he said, would fit the character of the village.