Tauranga City Council has given the green light to a new co-ownership structure for land in the CBD, which the commissioner has described as righting a historical wrong.
The block of land on Willow Street will be governed by the council and the Otamataha Trust, which represents mana whenua from the area.
Tauranga's CBD sits on Te Papa Peninsula, on part of 13,000 hectares handed by iwi to the Church Missionary Society in 1838, intended for the benefit of both Māori and the church.
But the church gave it to the Crown in the 1860s, despite mana whenua objections.
Tauranga City commissioner Anne Tolley, said the site had a long complex ownership history and the partnership is a historic milestone.
"Mana whenua have long argued that the land wasn't being used for the original intention that they'd sold it to the Missionary Society and therefore it should have been returned to Māori rather than being given to the Crown."
"It's a long history of grievance and a very simple process that we've put in place recognises that history, recognises the original intention of the use of that land, which was for the benefit of Māori and the wider community," Tolley said.
At Monday's meeting commissioner Sharach Rolleston paid tribute to the late Peri Kohu, who died not long after the proposal to establish a Council Controlled Organisation was put before the Commission in July.
"I hope that Peri is looking down with a sense of pride that his long-held hope for the land has been reconciled," Rolleston said.
Ngāi Te Rangi chair Paora Stanley has been scathing of the past councils but is thrilled with the latest progress.
"Tauranga City Council in particular, over the last six years ago, it was just horrendous in terms of charges of racism and all this other BS that was going on, which was political theatrics," Stanley said.
"And now you're actually sitting around the table, actually having meaningful conversations for the betterment of this city."
"It means sharing of information, sharing of resources, sharing of direction and when you get to that point, you don't want to give it all away. And you've got to be able to recognise how wonderful that is for our city and for our country to be able to think like this, operate like this and work like [this], it's really quite magnificent," he said.
A $303 million civic precinct will be built on the block of land, as part of plans to revitalise the city centre.
There were 73 submissions on the proposal, 50 of them in favour, 16 in opposition and six who did not support the proposal in its current form.