The new centre aims to better bring together children's health services into the one place, and provide a better link between the various services.
Mr Dunham said it was a good opportunity to make sure all the sectors worked together.
He gave the example of a child with poor teeth who needed multiple fillings.
"We'd put a team around those children, instead of just filling the teeth or pulling them out."
Depending on the level of need, some children would be assigned their own case manager, he said.
"We'll be asking the specialists to work as part of the team. At the moment we might send a referral say for education help but we're not actively managing those children."
The centre would have predominantly health services with rooms for education services and the like of Whanau Ora with the aim that parents would be able to go to one place, and see everyone needed to for their children. Visiting specialists from Auckland's Starship Hospital and Rotorua paediatricians would be on site, as well as almost all of the outpatient appointments. However it would not replace the role of GPs or the emergency department.
Appointments would be booked together where possible, so they did not have to return numerous times, in a bid to reduce people failing to show up at appointments - an issue they currently had.
"Even one child not coming in for an appointment is a concern."
He said they might even look at a pick up system to help increase attendance, where transport was an issue.
"There will be someone to co-ordinate everything."
Mr Dunham said they were considering a weekend dental service for children, although that was yet to be finalised.
"There is a lot of potential. No one else is doing this - it is a feather in our hat for Rotorua.
"The staff who see the potential are really excited. Some are a bit more cautious."
Mr Dunham believed the proposed facility would help to attract staff.
"It's a change. We are asking them to rethink about the way they provide services."
He described the centre as a "local solution for a local problem".
"It's about making sure our children get access to the services they need."
Mr Dunham said he hoped to have a more concrete timeline in the next couple of months but he would "want within two years to be operational".
He said he wanted the community to feel like they had ownership of the centre and were working on a developing a name for it that people could relate too.
Rotorua Lakes Council strategy and partnerships group manager Jean-Paul Gaston said the vision was to co-locate child health and library services within a refitted Rotorua Library building to meet child health and modern library needs. Surrounding areas would be developed and enhanced, creating a vibrant community plaza which would include a playground.
Mr Gaston said after final concept designs they hoped to make a final decision about whether the project was viable and should go ahead by the end of August.
They hoped to start building next August.
Mr Gaston said the library was not being downsized to "make room" for the child health facility.
"The library has been undertaking a review of its services with a view to meeting the needs of current and future library users so it's possible future library services will be different. However, this work was being done regardless of this joint project, rather than because of it."
Mr Gaston said there were no plans to reduce library services, although based on the outcome of the review, future services might be somewhat different to what they were now.
"Council faced the need to make improvements to the library building and Lakes DHB was looking to develop a child health centre incorporating a range of services that would be easily accessible and welcoming for all families in Rotorua.
"Council and the DHB saw an opportunity to combine the two and redevelop this part of the inner city as a shared facility responding to the needs of children, families/whanau and the wider community."
