Ryal Bush Transport staff have started the demolition of the Gore building that was the home of the town’s country music club.
In May last year, Kāinga Ora Homes and Communities bought the 7683sq m site planning to build public housing there.
Ryal Bush Transport project manager Quintin Winsloe said it should take about four weeks to remove the buildings, car park, curbing and paths from the site.
More than 90% of the building would be recycled.
"Approximately 8% will be what we call demo waste."
The asbestos in the building has already been removed by a specialist sub-contractor.
Kāinga Ora homes Otago Southland regional director Kerrie Young said it was "fantastic" the project was at the demolition stage.
"Plans to build around 20 homes are currently being drawn up and applications for resource and building consents will be lodged in due course, at which point we’ll be able to provide an update on our plans for the site."
