Pahiatua is likely to get a brand new, purpose-built recycling centre to replace the facility destroyed in an arson attack last month.
Tararua District Council acting chief executive Peter Wimsett said it had been confirmed insurance would cover the full replacement of the buildings on the corner of Queen St and Tudor Rd.
The building was gutted by fire just after midnight on June 8.
Another fire, at the Pahiatua police station between 1.30am and 2.30am that night, is believed to be linked to the recycling centre arson.
Assets group manager Kathy Dever-Tod said plans were being drawn up and a quantity surveyor would assess the costs to reach an agreement with insurers on the value of the payout.
Once that figure was known, probably within a couple of weeks, the council would look to alter the design to come up with a facility to fit the budget that would be easier for the public to use and for staff to handle the materials.
"The old buildings weren't designed for recycling and we are sure we can come up with something better."
The site has been cleared and secured ready for rebuilding, and bins were available there for people to drop off glass.
In the meantime, people were being encouraged to continue recycling by using the weekly kerbside collection service. Any bulk recycling can be dropped off at centres in Woodville, Eketahuna or Dannevirke.
Detective Sergeant Shane Brown, of the Tararua CIB, said scene examinations from the recycling centre and Pahiatua police station, which had damage to a door, showed both fires were deliberately lit and an accelerant was used.
Police had identified four young suspects, but no charges had been laid.
- Manawatu Standard
Is New Zealand's airport security stringent enough?Related story: Risky objects bypass Wellington Airport security