The development will be on land previously owned by Hastings District Council, leased by Recreational Services Ltd, a company contracted to provide parks and recreation maintenance services to the Council.
Within the new 7,000m2 facility will be a large imaging centre and a new cancer centre.
The cancer care clinic would be operated by Canopy Healthcare Group.
Canopy Healthcare Group chief executive Tony Moffatt said the $10 million clinic would be a "first of its kind in New Zealand".
He said it would have a full service imaging, consultation and oncology treatment centre offering "state-of-the-art" MRI and CT scanning technology and specialist oncology treatment under "one roof".
"We are introducing more MRI and CT capacity into the Bay, and for patients it means earlier diagnosis, world-class imaging and immediate cancer treatment, all in the region.
"Presently people going through non-DHB chemotherapy have to travel out of Hawke's Bay to receive their treatment, which can be stressful and physically demanding, they then return home before going through the same thing again three weeks later.
"Having everything local gives patients every opportunity of a full recovery."
Canopy Healthcare presently has a temporary cancer care clinic in Canning Rad as well as imaging facilities at Royston Hospital, EIT Institute of Health at Mitre 10 Park, Hastings Health Centre and in Napier.
"Like Kaweka Health we are dedicated to providing world-class care that is delivered locally.
"We have the very best radiologists, oncologists, haematologists, nursing, pharmacy, tech and support staff to care for our patients."
The new three-story building will feature "base isolation" technology, which is a first for buildings in Hawke's Bay.
The technology enables the facility to remain fully functional following a large seismic event providing assurance to Kaweka Health and the wider community in a time when it may be needed.
Demolition of the existing building will be a staged task starting in late November through to early February 2022, with the building expected to open in December 2024.
Stage one with four operating theatres, full pre-op and recovery areas (including overnight beds), along with 150 carparks is progressing well and is planned to open in June 2022.