The new Marine Precinct to be constructed at Tauranga Harbour will receive $10.38 million from Tauranga City Council in the next two years.

TCC yesterday approved funding the precinct at Sulphur Point to the tune of $5 million each year for the next two years.

Tauranga's Deputy Mayor Kelvin Clout, in front of the site expected to become the focus for Tauranga's commercial marine industries.

The funding will come from the sale of council-owned land and go towards stage one of the project involving construction of a purpose-built marine servicing facility and related infrastructure on the 3.56 hectare site, formerly the Baigents site, on Mirrielees Rd.

This comes after council adopted the project into its 2014/15 Annual Plan and established the Marine Precinct Advisory Group. It follows the announcement that Bay of Plenty Regional Council will assign $5 million from its infrastructure development fund to the project.

TCC's contribution of $5m is expected to be raised in part through sale of nearby land.

It is envisaged the precinct will provide a base for a cluster of marine-based businesses to invest in future growth.

Councillor Clayton Mitchell throws his full support behind the precinct and believes it will be a decision helping pave a better future for the city.

"I think there is an industry out there that is excited to get their teeth back into the city," says Clayton.

Currently, the total development allows for about 17 lots in ranging sizes, with stage one of construction planned to commence in the 2014/15 financial year. The first tenders called will be for the sea wall, 1.3 hectare hard stand and the travel lift facilities.

The project is expected to create 195 jobs, generate $15.12 million in added value to the regional economy each year, and make $46.95 million revenue per year in the economy.

The site is currently zoned as Port Industry and is owned by Tauranga City Council.

Council's decision means it will lead the project, and once operations are established will look to hand it over to another organisation – a direction Bill Grainger supports.

Bill says this is a council opportunity that will ultimately provide more activity in Tauranga, both for the marine industry and wider communities.

'Sometimes the council has to lead and I think in this case it's one we should for sure. It's an opportunity that we should not brush aside, but take and run with,” says Bill.

Councillor Bev Edlin agrees this is a project helping differentiate the city from others nationally and internationally with councillor Kelvin Clout quipping "this Marine Precinct really floats my boat".

"We need to recognise our valuable asset largely the marine sector and also the ocean," says Bev.

"We can't just look at a Marine Precinct we need to look at the wider picture."

Councilors Rick Curach and Catherine Stewart opposed the decision.