The Central Otago District Council signed off on the project in February and the old memorial hall was demolished over the winter after a farewell ceremony in May.
The nearby 14-tonne cenotaph and memorial gun were moved to nearby site where they will stay for the duration of the build until a new memorial garden is constructed.
The new building will be a multi-use facility with an auditorium, cafe, museum, cinema, meeting rooms and multiple public spaces.
It is expected to open in 2026 and will cost an estimated $45.8 million — to be funded by endowment land sales, external grants and debt funding.