Spectators will have the best vantage point from the gardens, as the race "really unfolds a lot on the hill".
"It might not be where the winning move is, but it's where you can potentially lose the race. As they go up each lap there's one or two people getting cracked, or dropped, so it's a good spot to see what happens," Mr Nicholls said.
And it will be the best spot to support cyclists, with Mr Nicholls encouraging spectators to bring "plenty of voice, or cowbells, or rattles, or anything that can make some noise and get the riders up the hill".
Organisers were hoping to up the ante this year - with more crowds, crossing live to the finish line, and a prize for the best dressed.
Mr Nicholls said people should choose something that allowed for movement, "so you can run up and down the hill as much as possible".
The carnival atmosphere will be helped by a competition for creatively decorated houses dotting the route.
Last year a group, including resident Ian Hollway, took up at a house near the Botanical Gardens to watch the streamed event, before racing outside to see the cyclists in person.
"The atmosphere there by the Botanical Gardens was phenomenal," he said.
"This year we'll be trying to encourage the party and making lots of noise."
He thinks the house on Spencer Rd might have encouraged this year's competition - as it was decked out with sponsors' posters.
The group were already planning what decorations to use this year, said Mr Holloway, who encouraged everyone to get involved.
• Enjoy the atmosphere at the free two-day Party on the Hill at the Napier Botanical Gardens, from 10am to 2pm, January 7 and 8, 2017. An Avanti bike and other prizes are available for best dressed, or sharing photos using #partyonthehill.
• To compete in the Dress your House competition, it must be decorated between 10am January 7 and 3pm January 8. Register before January 5 at summercyclingcarnival.co.nz