Mount Maunganui's on again off again urban plaza plan for the Phoenix carpark is on again with the City Transformation Committee recommending the council adopt a plan that keeps some of the Phoenix carpark parks.

The plan to turn the down town carpark into an urban park was faltering because of a fairly evenly split vote from retailers on what to do with the park.

But property owner and businessman Peter McSweeney pointed out to committee members that two thirds of the retailers want a park, 34 of them voted for option one, turning the whole carpark into a park and 35 voted for option 2, keeping some of the car parks. There are 32 Mount Mainstreet members who want no change.

Peter favours redeveloping the entire carpark and says the keeping some carparks on site is a 'dollar each way” compromise on behalf of the committee.

Some committee members view the compromise as enabling the council to later change its mind about the park if Mainstreet members don't like it.

Peter McSweeney says the combination of carparks and urban parks doesn't work and will create safety issues.

He told the committee that if the council goes ahead with the full park development he intends rebuilding the Eve's building alongside the park so that retail spaces and a café open out onto the Phoenix.

The modern use of urban spaces involves giving people reasons to stay longer, shopping, and also having a meal or a coffee; says Peter, pointing to the success of Auckland's Britomart precinct.

The committee is recommending council include the 15-20 carparks which will become paid carparks. They will be the only paid carparks in Mount Maunganui.

The compromise which was supported by former Mainstreet manager, councillor Leanne Brown, was something the committee members had come to agreement on over the last 48 hours or so, says committee chair Larry Baldock.

The Phoenix carpark was bought from the city council's transport department using $4.5 million of $5.47 million available in development contributions, that either have to be spent in the Mount North area before 2021 or returned to the developers that paid them.

If the council spends the remaining $1.27 million on anything other than open space development it will breach its own development contributions policy.

Council staff say repaying the money could cost an additional $50,000 to $100,000 because of the time and people required to search the records for all the people who paid it.

Following council approval the next steps are detailed design, consenting, calling the tender for construction works and construction. The open space is expected to be delivered by summer 2018/19.