Tauranga City commissioners are progressing plans to develop a council controlled organisation to deliver the $303 million civic precinct project.

The precinct called Te Manawataki o Te Papa, in Tauranga's city centre, will include a library, museum, civic whare and events centre.

At a Tauranga City Council meeting on Monday commissioners agreed to consult with the community on creating the council controlled organisation (CCO) that would govern delivery of the project.

Due to its significance, a review was commissioned by the council earlier this year into potential options for delivering Te Manawataki o Te Papa.

The review, carried out by Max Pedersen Consulting, assessed various options and resulted in a recommendation that a CCO be established to govern and lead the projects.

Council general manager of corporate services Alastair McNeil told the commissioners the investment in the precinct needed to 'meet the needs of the community, but come within budget as well”.

McNeil said the CCO would likely have a chief executive and a 'relatively small board” with the leader experienced in delivering similar scale projects.

He said the estimated set up cost of the CCO was $100,000 with an ongoing cost of around $600,000 a year.

Commission chair Anne Tolley agreed having an experienced board was 'critical” because no one at council had built a museum or undertook the landscaping development on that scale before.

'Not only the funders have to have confidence in in us, but also the community has to have confidence and that's absolutely critical to the project,” said Tolley.

Commissioner Stephen Selwood said the board of the CCO would 'provide a level of assurance” and 'risk management” to the commissioners, but also the new council when it was elected in 2024.

'As the project proceeds there are bound to be fish hooks, issues, supply cost rises, all of those sorts of challenges, in the delivery of the project.

'The board basically brings a set of expertise that we otherwise wouldn't have.”

In terms of the cost of the CCO, Selwood said: "This is a relatively small amount to pay relative to the project cost and the value that it will deliver in terms of confidence to potential funders as well.”

Commission chair Anne Tolley. Photo: John Borren/SunLive.

In statement after the meeting, Tolley said the proposed CCO could draw upon a wide range of industry and commercial expertise, which would enhance the delivery of Te Manawataki o Te Papa.

''This project involves a significant investment, so it's important that we take the right steps to improve cost efficiencies and ensure there is a structure in place that gives everyone confidence that the project will be delivered effectively – be it our funders, partners or the wider community,” said Tolley..

'Our community has been waiting for such a long time for the city's heart to be restored and we are committed to ensuring that Te Manawataki o Te Papa is brought to life in a way that benefits everyone.”

Te Manawataki o Te Papa will be developed over the next eight to ten years, with $150 million of the project funded by ratepayers.

The community will be able to provide feedback on the CCO proposal from November 21 until December 2.

The commission is expected to make a final decision at a council meeting on December 12.

Public Interest Journalism funded through NZ On Air.