Tauranga City Council is creating a temporary pop-up park and 21 additional car parking spaces on the Council-owned property from 82-98 Devonport Rd.
Work on the new space began last week, with contractors preparing the building for demolition. There'll be fencing in place during redevelopment.
The pop-up park and car parking spaces are a temporary measure until the land holding is developed.
The project is part of a number of measures to increase the number of car parks in the city centre until more permanent investment in a car parking building is made.
Council currently expects this new communal space to be ready to enjoy by December 2015.