Inland Revenue has reached an agreement with Hamilton Homezone Limited to provide accommodation for up to 500 staff in a new building at Te Rapa.
The contract signing today was the conclusion of a Request of Proposal (RFP) process that commenced in the middle of last year.
Inland Revenue Chief Financial Officer Lara Ariell said she was pleased with the outcome of the RFP and congratulated Hamilton Homezone for its innovative proposal.
"This building will provide a modern environment for our people to meet customer needs in Hamilton, and also provide taxpayers with the best value for money," Ms Ariell said.
The procurement process had been "exhaustive and incredibly robust," she said.
"Inland Revenue received support from other government agencies and sought independent assurance throughout the process. We were committed to finding the best possible outcome while also following best practice for a procurement of this nature and scale."
The department also has about 450 staff located at another location in Te Rapa.
Inland Revenue expects to move into the new building on Home Straight, Te Rapa, towards the end of 2018. A nine-year lease has been taken on the building, with renewal options included in the agreement, Ms Ariell said.
"This agreement will enable Inland Revenue to maintain its presence in Hamilton for the foreseeable future."