Chamber of Commerce chief executive Darrin Walsh said news of the new supermarket and job numbers was fantastic.
"To have a national brand supermarket coming in here is great.
"To have 35 new jobs created is fantastic and signals to others there is stuff happening here."
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• New supermarket for Rotorua
Mr Walsh said it was "well and truly" good news for the eastern suburbs.
"I think it is really good for that side of town."
Mr Walsh said it was great to see businesses creating jobs in Rotorua.
He said the news followed announcements of other new shops coming to town including NZSale and Max.
Mayor Steve Chadwick said it was fitting with the growth trend Rotorua was seeing.
She said she was heartened by a comment from the site's developer Wayne Parry that the lifting of the Rotorua Eastern Arterial had given the certainty needed for the development to go ahead.
"It's all going in the right direction."
Mrs Chadwick said she expected to see more development because of that certainty.
She said 35 jobs was positive, especially after the closure of Lumbercube and Verda going into receivership - although she conceded they were different roles.
While she had heard some feedback from people concerned about the impact the new supermarket may have on existing stores, she believed if they continued to give good personalised service they would survive.
Mrs Chadwick said it had been a long time since the eastern area had a supermarket and it would be beneficial to people living there, as well as those passing through.
"Business is very savvy. They always look where the growth is."
Work is under way at the site after landowners were granted resource consent to build a supermarket and drive-through fast food restaurant on the site.
The resource consent allows for a 1175sq m supermarket and a 250sq m fast-food restaurant.
The proposals also include a 65-vehicle carpark.
New development details
- 35 new jobs
- Expected to open late 2017
- Work currently underway at site
- Resource consent also allows for a fast food restaurant