Contractors have started working on a Princes St building that backs on to the Bond St lane-way, the first property to be upgraded as part of a proposed rejuvenation of the alley.
Property owner Hayden Cawte was happy to be the first "cab off the rank" and said he already had a brewery ready to move into the building when the work was completed.
All of the property owners and the Dunedin City Council were on the same page when it came to the rejuvenation project, Mr Cawte said.
"It’s a fairly collaborative approach, which is the way the council has been in these areas, which is a good thing."
"They are going to come in with their element of it and we will do our thing at the same time."
Last week, contractors started earthquake strengthening work on the ground floor and they would eventually work their way through the rest of the building, he said.
"The first stage is under way and we hope to have the brewery in place by the end of the year and, overall, I think the whole project should take about a year."
Mr Cawte hoped the area would eventually transform into a "Melbournesque" lane-way that was as successful as the nearby Vogel St upgrades, which he had also been part of.
"If you look at Vogel St five or even three years ago, people didn’t necessarily understand the vision in that area at the time, but it’s turned into something that’s been hugely successful for the city."
The project is part of the council’s warehouse precinct revitalisation plan.
Council urban design team leader Crystal Filep said before the lane-way upgrade could take place, legal arrangements and a final design had to be approved by the council.
However, council staff had kept in touch with landowners and businesses in the area and hoped to progress the lane-way project as soon as possible.
