A council spokesperson said this would replace lease costs across three commercial properties.
The council previously said the arrangement was the most economic solution.
“It enables private business to invest in the development of a quality office building, adding capacity to a constrained office accommodation market in Hastings without the council needing to invest.”
Tumu is using local businesses and suppliers for the project. However, it chose Wellington-based LT McGuinness as the main contractor because of its experience with mass-timber construction.
A Tumu spokesperson said it and LT McGuinness would use local subcontractors.
“LT McGuinness owns the tower crane – no local contractors have one of these,” the spokesperson said.
“Hawke’s Bay Cranes is being used for all lifting activities that can’t be undertaken by the tower crane.”
The building will include exposed timber interiors, secure bike storage, showers and lockers, and close access to public transport, cafes and civic amenities.
It will also have 47 on-site car parks, including EV charging stations.
LDR is local body journalism co-funded by RNZ and NZ On Air.