Mr Donaldson said he didn't get any sense that the growth in Rotorua was dropping off.
"We expect it to continue."
He said there were lots of projects under way and those were just the ones which had been announced.
Mr Donaldson said several council projects would be completed this year, including the redevelopment of the library to include a children's health hub, which was expected to be finished in November.
There was also work being done on the iSite building as well as the airport redevelopment announced last year.
Pukeroa Oruawhata general manager Peter Faulkner said the developments were an excellent sign.
The group is behind several of the major projects under way in Rotorua, including the $20 million redevelopment of Trade Central and construction of a new dementia village.
It is also working on a lakeside spa and hotel development on its Lakefront land.
Mr Faulkner said groundworks on the Trade Central redevelopment, which included major tenant Kmart, had begun.
"Work is well under way and we are ahead."
He said construction at the site would start at the end of March.
"The building itself will be completed at the end of this year."
Mr Faulkner said Kmart was targeting a March 2018 opening, although other tenants were likely to move in earlier.
"The building will be finished before Christmas," he said.
"We are still in discussions with a range of prospective tenants and it is attracting strong interest."
Pukeroa Oruawhata took over Whare Aroha CARE in September.
The village, the first of its kind in the Asia Pacific region, is based on the acclaimed Dutch dementia village De Hogeweyk. Designed to look like a typical New Zealand town, it will allow people to live in households, with their own kitchens, dining rooms and laundries.
He said the residential complex was substantially finished and they were now working through the entry part of the villages.
Mr Faulkner hoped the entry and residential part of the development would be completed ready for handover in June.
Meanwhile Mr Faulkner said they were making "good progress" on plans at the Lakefront spa development.
"We are looking to have the plans ready to be lodged in the second quarter of this year."
He expected work to start before the year was out.
"We aim to get under way as soon as we can."
He said they hadn't confirmed a budget for the project.
Another project, the development of the former RSA building into offices and a cafe, was expected to be finished in July.
"The city has a good feel. It's heading in the right direction."
Mr Faulkner said they were seeing quite a bit of inquiry for commercial premises from people who were looking to relocate.
"It is an excellent sign and reflection of the confidence in the economy."
Ryan Holmes, managing director of Holmes Group, said the second stage of Lynmore Junction was due to be finished mid-year.
He said 2016 had been big with the opening of stage one of Lynmore Junction, which included Motion Entertainment and BP.
"Motion Entertainment is going really, really well. It's busy as busy every day.
"Talking to one of the tenants, they have been blown away. It's been chocker every day."
Mr Holmes said phase one of the second stage would be completed in April with phase two done in May.
He said more than 50 per cent of the floor space was "tenanted unconditionally" in the second stage.
The construction value on the second stage of the development was about $5 million, Mr Holmes said.
The family has owned the land for 37 years and Mr Holmes said it was hugely satisfying to see the progress on site.
"It's been a huge journey and will be satisfying seeing the 360-degree view of the site.
"The transformation is huge."
Mr Holmes said while the focus was on getting Lynmore Junction completed, his company was always looking for new opportunities in the city.
Also out eastside, work on a new FreshChoice supermarket is progressing.
The supermarket, which is set to be built on Te Ngae Rd near the intersection with Wharenui Rd, is expected to create 35 jobs and open towards the end of the year.
SOME OF THE PROJECTS PLANNED:
• Redevelopment of the RSA building into offices and a cafe. Expected to be completed in July.
• $20 million redevelopment of Trade Central to include new shops including Kmart. Groundworks under way with construction expected to start end of March and be completed before Christmas.
• Whare Aroha CARE's new dementia village at Ngongotaha is well under way and is expected to be completed and handed over mid-year.
• Plans are expected to be lodged for a Lakefront spa development this year with work getting under way later this year.
