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Work has started on converting the former Hoyts cinema into a Reading cinema complex.
Reading Entertainment managing director Wayne Smith said work was ''well under way'', but the company was keeping the design of the complex confidential until it opened.
Mr Smith previously said the company was going to spend ''millions'' converting the building and the plan was to open ''mid'' this year.
Dunedin City Council building services manager Neil McLeod said a building consent for ''minor internal demolition and disconnecting existing services'' was granted last December.
An application for ''stage two of three'' of the project was lodged last week but was yet to be approved.