She said as well as being able to get income from the rent, a portion of a cup of coffee would go back to the Arts Village.
The Arts Village had raised enough money to get an outdoor modular stage, which will allow it to have a raised performance space.
It is also able to be moved around to different locations in the community.
The overall cost of the stage was $11,000 and the Rotorua Energy Charitable Trust agreed to fund half of that.
(From left) Alex Smith, Kate Williamson with Theo Smith (6 months), and Carole Stabler in the space that will be the Arts Village Cafe. Photo/Ben Fraser Acres said the new co-working studio space would have up to 10 artists working in there during the week.
She said the village was hoping to have a big celebration on January 10 for the additions, and so the public could have a look.
However, the celebration was still to be confirmed and all the information would go up on the Arts Village website and Facebook page, she said.
Co-owner of the Arts Village Cafe Alex Smith said the cafe space would stay an art gallery, but there would be tables and chairs in the middle.
It will open on Monday.
He said the plan was to source local produce and the menu would be small and a bit different to most cafes.
"We want to keep it relaxed and a place where people can chill out and look at the art."
He said the cafe owners and The Arts Village had similar goals and values.
"It's been great working with them so far and I think we can work together to complement each other.
"Hopefully it will get more people to come down and look at the art and whatever else is happening here."
Co-owner Kate Williamson said The Arts Village first approached their friend and third co-owner Carole Stabler about setting up the cafe, and Stabler then reached out to her and Smith.
They said the cafe would not be a rush in and out sort of place, and they just wanted it to have a chilled vibe.