Tauranga's marine harbour precinct and a city university development are receiving a $20million boost from the Bay of Plenty Regional Council, which is expected to create 800 new jobs.

The allocation is part of the $40.5million granted to infrastructure projects by the council, confirmed during a confidential section of yesterday's regional council meeting in Rotorua.

An original concept perspective of the completed Tauranga Harbour Marine Precinct.

The money - $5 million for the stalled marine precinct, $15 million for the Durham Street university campus, and a further $18 million for the Opotiki Harbour Transformation Project - is expected to create jobs and education opportunities with no impact on rates in coming years.

The marine precinct has been stalled for 18 months due to a lack of a developer, and the city centre campus requires the regional council money to attract a dollar for dollar TECT grant.

Council CEO Mary-Anne McLeod says it is exciting to be able to support projects that create employment and education opportunities across the region, without having any impact on rates.

The fund was established several years ago through the sale of perpetual preference shares in Quayside Holdings - the council's investment vehicle for majority ownership in the Port of Tauranga.

'We've retained our 54.9 percent ownership of the Port, but also released value for infrastructure funding. The council is committed to supporting economic growth in this region,” says Mary-Anne.

The Opotiki Harbour project's allocation of $18million will enable the growth of the aquaculture industry by providing all-weather, all-tide access into Opotiki Harbour. A further $2.5million will go towards a new innovation centre at Rotorua's Scion Innovation Park.

The announcement is being welcome by Tauranga business groups, economic development agencies, education providers and councils across the region.

Priority One CEO Andrew Coker says the Tauranga projects have the ability to 'significantly transform the region's economy”, generating $183million in revenue with a predicted $133m from the campus and $50m marine precinct.

Andrew says the region is lucky to have a council that is so clearly committed to economic development.

'Quite simply, they are unique in this regard in New Zealand in terms of their contribution and commitment to delivering a step change to our economy.”

Tauranga Chamber of Commerce CEO Max Mason also applauded the announcement saying the ramifications of this landmark decision are 'immense” for the region.

'If TECT makes the same commitment, then on every level Bay of Plenty people will prosper. Young adults who stay in the Bay to study here rather than going elsewhere are this community's lifeline to the future. Young people from around the county and internationally will be drawn to the Bay of Plenty, and our whole region will benefit.”

Tauranga CBD tertiary campus - $15million

The shared university campus and research facility is going to be built on the council carparks in Durham Street. The Tauranga City Council has donated the land for 30 years.

It will cost $67.3million in total and is being developed by the Bay of Plenty Tertiary Partnership, comprising the Bay of Plenty Polytechnic, University of Waikato and Te Whare Wananga o Awanuiarangi, based in Whakatane.

The regional council input is essential to attract the $15million TECT funding for the $30million first two stages.

This is planned as two five-storey blocks housing 1000 full time students. The BOPRC funding paves the way for the first stage opening in 2015.

'The city centre campus development is a key project to enable the University of Waikato to grow to scale in the Bay of Plenty, providing student pathways to higher education,” says Andrew.

The new campus is predicted to generate $133million in regional revenue and provide more than 600 new jobs.

University of Waikato Vice-Chancellor Professor Roy Crawford says the announcement is a key step in its commitment to bring quality university coverage to the region.

Bay of Plenty Polytechnic CEO Dr Alan Hampton says the funding shows the importance the regional council gave to creating a highly skilled regional workforce.

Marine Precinct - $5million

The marine precinct will provide purpose-built marine servicing facilities and infrastructure in a 'state-of-art business park next to the harbour bridge at Sulphur Point. It will revive Tauranga's marine industry with a maintenance and haul out facility for medium sized commercial and large scale recreational vessels.

The city has lost millions in income since the 600tonne slipway was removed to make way for the second harbour bridge. The two marina travel lifts have a maximum capacity of only 35 tonnes, and are incapable of lifting the larger fishing boats, port company tugs and other craft that used the slip.

Andrew says an economic impact study commissioned by Tauranga City Council earlier this year forecast nearly 200 new jobs and nearly $50million in revenue would come into the economy from a development of this type.

The $5million will go towards paying for the hard standing on the former Baigents site in Mirrielees Road and a 300tonne travel lift.

In May last year the council called for community interest to undertake the $30,000-$50,000 geotechnical survey of the former mill site.

Tauranga's Marine Industry Association, a group representing more than 70 marine related businesses, has been working on the central marine precinct project for about eight years.

Chairman Robert McAllister says the announcement is fantastic news.

'Hopefully it will be a good kick start to the marine precinct project,” says Robert. 'Hopefully this will stop the years of degradation and wearing down of the marine assets and signals a U- turn in the fortunes of the marine industries.”

The sticking point in the development is it involves high set up costs providing the hard stand, which will involve concreting most of the site between the waterfront and Mirrielees Road to take the weight of the 300 tonne Travelift and provide the yard space for the boats.

'You're talking 75 years plus or possible ownership with covenants,” says former chairman Brian Kent.

'It's a straight up outlay with a return over time. There's obviously business and capital risk in those decisions.

'With the right type of long term security to a developer or consortium in the industry, there is a viable proposition to stage into a long term result over there.”

Western Bay of Plenty Mayor Ross Paterson says the funding for the marine precinct will provide sustainable benefits.

'Today's announcement is not only about building tangible assets that are fundamental to the future of the Bay it's also at the heart of building skill capability and capacity across the region.

'The Bay of Plenty already has a national and global reputation for the production and distribution of world class primary products.”

Opotiki Harbour Development

Support for the Opotiki Harbour development has been welcomed by Opotiki District Council CEO Aileen Lawrie who says the funding validates the extensive detail and research that backs up the project.

'The Harbour Development has been planned, designed, developed, reviewed, and promoted for over ten years. It is incredibly exciting to finally reach this point.”

Aileen says the $18m paved the way for 'exciting social and economic changes in the district”, by enabling the development of a thriving aquaculture industry. She says the announcement meant they had half of the funding needed for the projects and expects to hear back from the government about funding the rest in the next few months.

The funding will be used to develop twin groynes (structures stretching from the shore to interrupt water flow) and dredging to create a harbour entrance that will be navigable almost every day of the year.