They will be moving to their temporary premises from July 20 and open there on July 27.
She says the construction process will be a long one and could take between one and two years, but it will be exciting when they move back into the new building.
Carol says the kindergarten building is quite iconic, and that when people ask where she works they often say someone they know or themselves went there.
"It's well-known and has a lot of history."
Today, the kindergarten is holding a farewell day, which past teachers and pupils have also been invited to join in with.
She says the day will include lots of fun activities for the children who are coming in dressed up, a performance by the children and kai.
"It's a time for families to come and share the history, memories and fun times."
She reckons there will be a mix of emotions today, of sadness but also excitement for the future.
Carol has been working at the kindergarten for seven years.
When asked what she loves about it, the response was, "The children of course.
"Every day is different and there's just so many special moments with the children, and of course with their lovely families that come through those doors.
"We've built up a kindergarten which is like family."
Helen Downer was originally a secondary school teacher and taught at Rotorua High School.
In 1950, Helen convened a public meeting that established the Rotorua Free
Kindergarten Association, of which she became president.
She was later elected national president of the New Zealand Free Kindergarten Union in 1957, a role which she held until she retired in 1966.