South Dunedin Business Association committee member Nick Orbell said housing the hub in the former BNZ building in King Edward St and the neighbouring council car park was a good choice, as long as its existing tenants were not disadvantaged.
However, he called on the council to build a car parking building alongside the hub, as parking was already stretched in the area.
The proposed community hub would include a library, internet facilities and places for community groups to meet.
Council services and development general manager Simon Pickford said the council was looking at having a separate part of the hub at the Dunedin Gasworks Museum, in Braemar St, but it was by no means a "fait accompli" where the hub would go.
Any decision would take into account feedback from a community open day to be held at the Gasworks Museum on August 20, Mr Pickford said.
At that meeting, people would be presented with other options staff members had assessed.
Councillors would likely have the final say on the location at next month’s council meeting, at which they would be presented with feedback from the open day.
Construction of the South Dunedin hub could start as early as midway through next year.
Mr Orbell said the BNZ site was a good location as it was right in the middle of the retail precinct.
He was also "delighted" to see a timeline for the start of construction, as South Dunedin had been calling for a community facility — previously a library and now a hub — for decades.
It was the right time for the council to offer some "tangible support" to back up their words about supporting the South Dunedin community.
He believed the council should also put up a car park building on the neighbouring section of car park it owned.
This was because the hub would add to demand for car parks in an area which was already becoming "quite challenging" for people looking for parks.
Mr Pickford said among the positives in favour of the BNZ site was the fact there was a council-owned car park right next door.
Other positives of the BNZ site included that it was on the main street and was a heritage building.
The council has set aside $2.6 million for the hub in the 2017-18 financial year and $3 million in the 2018-19 year.
The open day on August 20 runs from 10am to 4pm.
