Construction of the new Donald Street carpark in Nelson Bay is now underway.
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Port Stephens Council said it expects the new carpark, which once complete will provide 107 parking spaces in the Nelson Bay CBD, will be operational in time for the April school holiday break.
"The construction period is expected to take eight weeks, weather permitting, and is scheduled to ensure that we are ready with new car parking facilities to deal with our busy Easter holiday period," the council said.
"The existing gravel, unmarked carpark area will be closed for the duration of the works.
"There will be some noise as part of the construction works but this is expected to be minimal."
The $1.2 million project is being funded through the council's Port Stephens 2020 priority works program.
Work on establishing the new carpark began on Tuesday, February 18, coming one week councillors voted to reject the single tender it received to complete the work - on the grounds that it was outside the council's budget - and for the council to carry out the design and construction.
The new ground-level carpark will provide 103 traditional parking spaces and four dedicated mobility parking permit spaces.
The carpark, which was built in 1991, was closed by the council in November 2014 after 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.
In the five years after the multi-storey carpark was closed, before its demolition, there were many calls from organisations, businesses and councillors to repurpose the carpark or tear it down.
In October 2019, the council announced it would be fully funding the demolition of the carpark and adjoining toilet block and replacing it with level parking as part of the Port Stephens 2020 program.
During the construction period, as was done during the demolition of the old multi-level carpark, ticketed parking will be free in Nelson Bay.