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The first sods of earth were turned in November last year, and now the site has foundations and framework, and the beginnings of plumbing and walls.
The former High Street School site was bought by Urban Cohousing Otepoti Ltd in 2013 with the aim of creating an inter-generational cohousing neighbourhood built on ecological values and encouraging social interaction.
When it is finished, it will provide more than 60 residents with shared spaces and 22 units.