Part of Magnus Street was closed to cars on November 11 as the multi-storey carpark, which has been partially closed to the public since 2014 due to structural damage, was torn down by machinery.

Demolition of the structure will be fully funded through the council's $15.9 million Port Stephens 2020 works program. It is the third major project being complete as part of Nelson Bay Next. Once demolished, the space will be turned into level parking.

"Port Stephens Council has been driving progress in Nelson Bay through our brand Nelson Bay Next. We've completed the Yacaaba Street extension, we're revitalising Apex Park and now we're getting rid of an eyesore which is detracting from the visual appeal of Nelson Bay," Port Stephens Mayor Ryan Palmer said of the project.

"After years of inaction in the town centre, it's fantastic to see progress on three key actions from the Nelson Bay Town Centre and Foreshore Strategy."

The carpark, which was built in 1991, was closed by the council in November 2014 after an independent assessment found structural damage to be present.

Levels one and two of the carpark, totalling 114 spaces, were closed but the ground level and land immediately next to the structure were kept open for parking.

To alleviate parking pressure in the Nelson Bay CBD after the closure, the council opened two new car lots, providing 125 parking spaces, in Yacaaba Street and Government Road.

There will be a break in works during the Christmas holiday period. Construction of the new, level carpark is expected to begin in February 2020.

During the demolition and construction period Port Stephens Council has made a number of ticketed parking spots across Nelson Bay free. However, time restrictions still apply.

Off street parking:

On street parking:

ALSO READ: Bay 'eyesore' top close for demolition