City councillors have backed the Tauranga Energy Consumer Trust's project to build a community hub building on land at the Historic Village green.

Councillors voted to sell TECT the village land for the community hub because it solves a lot of drainage issues at the village, it will bring new life to the village, help with its debt, improve the greenspace and with the addition of a covered stage be an asset for future events.

Not how it's actually going to look, but TECT won't release the redesign. Image: Supplied.

The council is selling TECT 4,790m2 of village land at an agreed value of $250m2. The sale price is $1,197,500.

TECT is undertaking the creation of a safe building platform on which the community hub will be constructed, including undertaking drainage investigations and works, and relocating existing buildings. TECT will also reinstate and improve the green space which adjoins the land where the community hub is to be built.

The costs are estimated to be $722,982. Building Platform $151,780, Green Space Improvements $235,842, Reinstatement Costs $335,160.

The city council completes the subdivision, issues the new titles and TECT obtains the resource consents to develop the land.

There a 20 per cent contingency capping council's liability for works required at $120,497. The net sale proceeds will be in the region of $414,000 which will cover the costs associated with the subdivision of the land and associated legal, valuation and other advisors fees.

It's expected that these costs will not exceed five per cent of the land value. The leftovers will be used to repay debt associated with the Historic Village.

The consumers trust is required to start work within two years of the date of the documentation, and to have completed works within five years.

Mayor Stuart Crosby says TECT didn't need to build its hub at the village, it could have chosen land anywhere else in the city, but chose the Historic Village site because of the community connections there already. He jokingly asked TECT chairman Bill Holland if there were any other TECT projects for which the council could sell it land.

Councillors commented that they made their decisions in spite of a recent social media campaign because the facts make it a positive project for the village and wider community, while some of the facts in the opposition campaigns are simply wrong.

Bill Holland says he's concerned at some of the mischievous comments like those suggesting the jazz festival would no longer be able to go ahead in the village. An outdoor stage area is part of the design says Bill.

'Some comments are bordering on being slanderous and defamatory,” says Bill.