Whakatane needs a new library, museum and gallery according to a summary of an economic feasibility study for the Whakatane District Council.
It concludes that an integrated arts, culture and tourism centre on the waterfront would deliver better value to ratepayers than refitting existing buildings.
The report says a new centre, possibly with a linked hotel, might help to stimulate business and leisure activity.
The district council acknowledges current facilities are below national standards and says a decision is likely to be made next month.