The Dunedin City Council announced a year ago the popular all-day commuter car park, with space for up to 300 vehicles, would be closed for about two months when work began on the latest link in the city's cycle network.
City council group transport manager Jeanine Benson said the car park upgrade had been waiting for funding to be confirmed as part of the 2020-21 Annual Plan process.
The funding was signed off at the end of last month.
"Other delays included the impact of the Covid-19 lockdown."
An exact closure date was yet to be confirmed, she said.
The upgrade would cost the council about $700,000.
Ms Benson said the car park upgrade was part of a wider project, including an adjoining cycleway extension, "a key part of the city’s move to an integrated cycleway network".
An upgrade of the St Andrew St level crossing and a relocation of a nearby railway siding would also be included.
Work on additional aspects of the wider project, excluding the car park upgrade, was expected to cost another $4.6million, of which the NZ Transport Agency would contribute 54% if the work was completed in 2020-21.
"At this stage, the upgraded car park will have space for 235 car parks and eight campervan parks."
The council was still reviewing options for alternative parking arrangements during the period the car park would be closed, "including extending the existing off-street car park on Parry St and changing the parking layout of Harrow St".
"Other options, including encouraging motorists to explore alternative transport options during the temporary closure, are also being planned."
Ms Benson said Dunedin was a big step closer to an integrated cycleway network the city could be proud of.
"As part of that, it is crucial to have proper mechanisms in place at rail level crossings for cyclists from a health, safety and wellbeing perspective."
More details would be provided closer to the start of the upgrade, she said.
