The Kaikōura District Council last week appointed local company LMC Building and Construction Ltd to begin work on the first building of the Wakatu Quay development, which is hoped to be completed by the summer of 2025/26.
The council received 14 expressions of interest, with five companies invited to tender for the project.
The development will have a seafood theme, with a hospitality business expected to operate from the first building once it is complete.
Project Wellbird, which is run by the Kaikōura Wildlife Centre Trust, will create 'safe zones' where penguins are known to nest around South Bay, alongside the existing little penguin sanctuary, and on the north side including near Wakatu Quay.
Project co-ordinator Sabrina Luecht said the aim is to provide spaces where penguins can come ashore and nest or molt.
The penguins face multiple threats including starvation due to decreased ocean productivity, caused by climate change, overfishing, and predators, including cats and dogs.
"People think there are lots of penguins in the area, but only the little penguins breed here.
The areas will be fenced off with predator trapping and signage.
The trust already has 55 penguin boxes built by volunteers from spare wood donated by Kaikōura ITM.
Project manager Chris Sturgeon said the community has an obligation to help wildlife which is "so precious to us".
The project received a $10.18 million grant from the Ministry of Business, Innovation and Employment in 2019 to redevelop the area, which suffered damage in the 7.8 magnitude earthquake in 2016.
Sturgeon said he hoped to sign up a tenant for the new building over the next few months."There is good interest among hospitality-based organisations which have existing operations.
"The environment we are in is difficult, but the feedback we've had is, 'when you start building, we will be interested'.''
The start date for the build is still being negotiated, but Sturgeon said he was confident the new building could open for the summer of 2025/26.
Mayor Craig Mackle said the council was happy to have selected a local company to build the development.
''The council has been committed to the Wakatu Quay development and is pleased to see the funds will be distributed throughout the community, being the intention of the fund to begin with.
''This is the beginning of an exciting development that will support the town for many years to come.''
The council decided to take the lead on the project last year after it was unable to find a lead developer
The Kaikōura Marine Development Programme has worked with architects Warren and Mahoney to design the waterfront development with a seafood theme.
The final design for the first building was approved by the council in May.
By David Hill, Local Democracy Reporter
- LDR is local body journalism co-funded by RNZ and NZ On Air.