Oamaru contractor De Geest Construction has made a start on the $400,000 project in the western end of the former ECNZ building on the corner of State Highway 83 and West Rd.
The project is being funded by grants obtained by the Otematata Residents Association and $128,000 from the Otematata village fund held by the Waitaki District Council.
The ECNZ building was bought by the council for the Lakes Centre for about $1 million in 2006.
Part of it has already been converted into a shop-cafe, meeting rooms, offices and other space. The other half was left to the residents' association to develop as a community centre-sports hall.
Residents' association chairwoman Pam Firman said this week the contractors had started work on a new entrance for the community centre.
The new community centre would have a hall, mezzanine floor for a gymnasium, toilets and a "heat-only" kitchen.
It was expected to be finished by late next month or early November.
She hoped the work would have progressed enough for an open day at Labour Weekend, when many holiday home owners were in the town, then completed in time for the association to hold its annual meeting there in November.
