The Z Service Station in Green Island is to get a multimillion-dollar rebuild this year in yet another major development planned for the area.
Z Energy retailer Jonathan Usher said the existing service station in Main South Rd would be ''knocked over and rebuilt''.
''The Green Island redevelopment has been planned for some time. We're hoping it will begin in the next couple of months.''
Z Energy confirmed more than $2 million would be spent on the project.
The Z development follows confirmation last year Progressive Enterprises is to build a new supermarket in Green Island and the Sunnyvale Sports Centre will get a $1.4 million upgrade.
Countdown has also confirmed it plans to build a $15 million supermarket in nearby Mosgiel.
Mr Usher, who operates Z Service Stations in Mosgiel, Green Island, Dunedin, Palmerston and Oamaru, said the new-look Green Island facility would feature a modern shop, new fuel tanks, a larger forecourt and four lanes of fuel service for motorists.
The new building would better utilise the land at the existing site, he said.
''We don't use half the footprint at the moment. It's going to be a modern space.''
Work was expected to start in the next few months. The service station would be closed for about three or four months while that took place.
Mr Usher said it was too early to say if additional staff would be employed when the business reopened. Existing staff would work at other Z service stations while the rebuild took place.
Tikey's Workshop, owned by Merv and Robyn Tikey, operates out of the existing service station and will return to the site once the new facility is finished.
Mrs Tikey said the family had a long association with the site dating back to Merv's father, Eric, in the 1960s and were keen to see that continue.
They would temporarily move their business to Old Brighton Rd, behind the Totalspan Building, from February 1.
The Tikeys would build a workshop behind the new service station.
Mr Usher, a member of the Saddle Hill community board, said he was excited by the Z redevelopment and believed it showed confidence in Green Island.
''It's really positive for the area. This is a great way for us to commit to the community.''
Consent for the Green Island supermarket was granted in August last year and clearing the site is under way. Construction of the 1500sq m facility is expected to be completed later this year.
Moyle's Supervalue Supermarket on the opposite side of Main South Rd will close and the new supermarket will be branded Moyle's Fresh Choice.
In Mosgiel, Countdown plans to build a $15 million supermarket in Gordon Rd, replacing its Factory Rd store.
The project will created 48 jobs.
The Dunedin City Council is publicly notifying Countdown's resource consent application with submissions on the proposal closing on February 9.
The proposed 3450sq m supermarket in Gordon Rd will be built on the former site of St Mary's School.
It will almost double the floor space of the present Countdown.
