The complex rigmarole involved in transferring $5 million from the Bay of Plenty Regional Council to Tauranga City Council is finally resolved and the execution is expected to be agreed upon by the city council next Tuesday.

Tauranga City Council is the first local authority to receive cash from the regional council's $42 million Regional Infrastructure Fund, which was set up to support and promote economic development in the Bay of Plenty.

A 300 tonne travel lift is to be purchased for the precinct. Picture: MTB

The two councils entered a Heads of Agreement in October 2014, outlining conditions for a $5 million grant from the Regional Infrastructure Fund for the Marine Precinct development.

Just over a year later the councils have agreed on the detailed conditions of the funding, allowing for the execution of the Funding Agreement in the coming weeks and the progressive receipt of the $5m grant, says a statement released by the city council.

Having the cash means the council can buy a 300 tonne travel lift, the key piece of infrastructure for the project, which is intended to replace the 600 tonne slipway, removed in 2007 to make way for the second harbour bridge. When removed the slipway was 40 years old and worth $6-10 million in business each year to its operators.

On Tuesday the city councillors will consider delegating authority to the Mayor and chief executive for the execution of the Regional Infrastructure Funding Agreement for the Tauranga Harbour Marine Precinct project.

The execution of the agreement will be the catalyst for the procurement of the travel-lift and the sale of eight lots within Stage 1 of the Marine Precinct's development.

The marine precinct project is a $10m project to deliver a purpose-built marine servicing facility at Sulphur Point. The precinct will provide a base for boat building and refit businesses in Tauranga City and will be managed by Tauranga City Council under the Vessel Works brand.

By the completion of stage one later in 2016, the precinct will include lots in a range of sizes for marine businesses, a 6200-square metre hardstanding vessel storage area, deep-water marina berths for large vessels and New Zealand's largest vessel hoist at 300-tonne haulage capacity and extra-wide to cater for multi hulls..

The development of more lots, and extensions to the hardstand will be undertaken in stages, based on demand.

The Bay of Plenty Regional Council is the funding partner for the Marine Precinct project, contributing $5 million through the Regional Infrastructure Fund. Tauranga City Council's $5 million contribution will be offset by the sale of properties on and near the site.

For more information please view the project website