The Whakatane District Council has announced it will be taking over the Whakatane Holiday Park on May 5.

Negotiations for the holiday park have been ongoing since late 2016, and chief executive Marty Grenfell says bringing the strategic community and tourist asset into public ownership has come ‘just the right time'.

The holiday park is currently being used to provide temporary accommodation for people who have been displaced due to the recent floods, but this is not a long term plan for the park's use.

Current owner Noel Galloway says while he had visions of the park being used for residential and retirement purposes, he appreciates the difficulties associated with that.

'I am therefore pleased that the Council and I have been able to reach an agreement on this and I look forward to spending more time fishing.

'The council agreed the holiday park is a hugely strategic community and tourist asset that will play a significant role in supporting the Eastern Bay of Plenty's burgeoning tourism industry.

Marty says the park's location and facilities, combined with future tourism trends for the Eastern Bay, makes it a business that has great potential to deliver future benefits to the entire community.

'The Whakatane District Council sees tourism as an important vehicle for community transformation and sees this purchase as a perfect complement to the recent Ngati Awa purchase of White Island Tours.”

The council paid $1 million in a negotiated settlement, which includes the operating lease, and fully intends to retain the existing use of the site into the foreseeable future. The decision to purchase was unanimous.