Tauranga City's vision of becoming a high-performance hub for athletes is out of the starting blocks after confirmation of a new, $3.5million sports centre.

Construction will begin in July to transform the former Mount Maunganui Cosmopolitan Club into Tauranga's High Performance Sports Centre. It is expected to be complete by the end of December.

Bay Venues CEO Gary Dawson, at the former Mount Maunganui Cosmopolitan Club building, which is set to become Tauranga's High Performance Sports Centre. Photo: File.

The announcement comes after Tauranga City Council agreed to contribute around $1 million towards the centre on the basis that Bay Venues Limited was able to source the remaining project funding.

Bay Venues Limited has reported to council it has secured the requisite funds of approximately $2.5 million and the final arrangements are being made.

It was given approval by council to spend $95,000 exploring the transformation of the vacant building into a sporting centre of excellence.

The decision to proceed with the next stage of the project, which involves converting the former cossie club at Blake Park into a top-class facility for talented athletes, will enable the development of a strategic asset for Tauranga.

The next stage involves completion of design work, obtaining consents and converting expressions of interest into formal agreements.

Tauranga Mayor Stuart Crosby says overwhelming support for the project has come from a wide range of representatives from the sporting world.

'Establishing this centre is a strategic move to invest in the future of the city and build community pride,” says Stuart.

'It will also help to grow Tauranga's reputation by developing a venue that can cater to, and host, international sports stars and events in the Bay.”

Bay Venues Limited chief executive Gary Dawson says the planned starting date of on-site construction is late July. The due date for completion is the end of December this year.

'We are excited to be taking the next step in bringing this world-class venue to the people of Tauranga,” says Gary.

'It will be an asset for the city that will be recognised nationally and internationally as a great place for skill development and sporting career growth.”

The High Performance Sports Centre will cater for a wide range of athletes, sports and high-performance organisations, sports science research, and athlete medical support services.

It will complement Tauranga's existing facilities at the neighbouring Blake Park and other facilities run by Bay Venues Limited, including Baywave, Mount Maunganui Hot Pools, ASB Baypark and ASB Arena.

Establishing such a facility is in line with Bay Venues' philosophy of enhancing the community through the provision of excellent sport and leisure facilities.

The former Cosmopolitan Club building has been vacant since TCC bought it for $6.3 million in 2009 in an arrangement clearing the way for the nearby Mount Greens project.

The building is located in a 100-space carpark on a triangle of land on the corner of Miro Street and Kawaka Street, beside Blake Park.

It's located across the road from hockey turfs, adjacent to the Bay Cricket oval and the international class nets, as well as playing fields, netball and tennis courts.

The council called for proposals for the building last year, but nothing viable came from it.

Council funding is made up of the proceeds from the sale of the adjoining council owned house and a loan.

The council bought two properties - 50 Miro St, which has a house on it, and 54 Miro Street, the 6308m2 Cosmopolitan Club site with 99 carparks and 2685m2 of floor space.

The main building was built in a number of stages. The older part of the building has a seismic rating of 22 per cent of the New Building Standard. The newer part is 76 per cent.

Council will also fund remedial work to the building.

Alternative funding was required for the internal building fit out and equipment.