Invercargill city leaders have a once-in-a-generation opportunity to develop its central city into a bustling, modern and cultural-focused metropolitan hub, Centre City Governance Group chair John Green says.

"The expectation from the community for what a re-vitalised city centre is going to provide, some brave decisions will need to be made," he said at an Invercargill City Council infrastructure and services committee meeting on Tuesday.

The council is currently developing a city master plan, which aims to connect existing developments in the city centre with existing businesses, improve streets and public spaces to bring life and activity to Invercargill’s heart.

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To help oversee the development of the master plan, the ICC formed a Centre City Governance Group in August 2020. 

Mr Green, who is also the H&J Smith chief executive, updated councillors on the master plan at the Tuesday meeting (October 6).

He urged councillors to get engaged with the planning process now, so they could be ready to make decisions on the future of the city by December, when the final plan is due.

"This project is time-bound and it's under pressure, so it's our [governance group’s] job to make sure we're making good progress."

"What's decided in the next couple of months will determine what the next generation inherits."

"At the same time though, we need to make sure we have a fully functioning city-centre come February 2022," Mr Green said.

Puddles galore at Invercargill's city centre construction site on Tuesday. PHOTO: Marjorie Cook

Mr Green said a key issue rising from the master plan report was the city centre needed a “place for people.”

"Feedback from the stakeholder groups have strongly continued to highlight that this spec is missing and is needed. One of the ongoing challenges is to agree on what this space will have, what it looks like and how it will function. This could, and most probably will, have different play elements for an intergenerational space . . . To create more space for people will require reallocation of streets,” the report said.

Mr Green said Tay Street could be totally changed to make it more user-friendly.

It could be reduced to one lane, have more green space, and have the speed limit lowered to ensure increased foot traffic in the area, he said.

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Cr Nobby Clark said he thought this was a good idea.

"One of the downsides of having wide streets is that there is a lot of disconnect in the CBD," he said.

Mr Green said the governance group were aware of what this could mean for other business already on Tay Street,

"We're wary, I guess, of what it does to the south-side of Tay Street," he said.

Invercargill's inner city development must be a space for people, master plan report says. PHOTO: Marjorie Cook

Mr Green also said if inner-city apartments were built, they would be a viable option for increasing foot traffic.

"Build them and they'll come...there's no question about the demand."

The Invercargill City Council has invested $40 million into the inner-city block development, which is bordered by Tay, Dee, Kelvin and Esk Streets. 

The first phase of the new inner-city development, the opening of the anchor store Farmers, is expected to be completed by April/May 2022 with the remainder of the development to be completed by October 2022.

It is estimated the development will cost $165 million.

The council also invested an extra $20 million into street works to make improvements in public spaces around the city.