Council chief executive Geoff Williams said there was history of failed attempts to revitalise the inner city, pointing to the need for a new direction.
"Nothing had worked, and there was a question mark around Rotorua's reputation," he said.
Several councillors welcomed the latest strategy under discussion, which was developed by councillor Karen Hunt using public submissions and the recommendations of a stakeholder steering group.
"I'm passionate about it because the community is passionate about it," councillor Merepeka Raukawa-Tait said.
In the original draft strategy, stakeholder steering groups had recommended the demolition of the City Focus building - a proposal challenged by a number of public submissions on the Long Term Plan.
The revised strategy proposed further discussions with the steering group.
But for some councillors this was not enough of a guarantee of City Focus' future.
"That's what the submissions clearly said - no, no, no," said councillor Charles Sturt, who chose to leave the chamber before the vote on the inner city strategy.
Councillors who voted against the motion were Peter Bentley, Rob Kent, Glenys Searancke and Mike McVicker.
"I have sat here for two days now listening to everyone justify what the community has told us we can't afford," said Mr Kent.
In response to this comment, the mayor gave an impassioned defence of the inner city project - including the recommendation to demolish City Focus.
"We sitting here were elected on a change portfolio," Mrs Chadwick said. "Quibbling over $10 million over the next 10 years, I find that very sad."
Approved so far
* A $2 million redevelopment of Concert Chamber at the Sir Howard Morrison Performing Arts Centre (subject to $1.5 million external funding bid)
* To demolish Community House
* A $15 million dollar upgrade of the Aquatic Centre (subject to $7.5 million external funding bid)
* $8 million for earthquake strengthening of Museum and i-Site.
* Move to wheelie bin refuse collection
