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The Roman Catholic Diocese of Dunedin took advantage of a rare opportunity to expand the college grounds by up to 25%, by buying the neighbouring Otago Polytechnic grounds last year.
Kavanagh College principal Tracy O'Brien said the college was situated on a small parcel of land between Rattray St and Tennyson St, and the polytech grounds across Tennyson St were bought in December last year mainly to give the school and its 900 pupils some breathing space.
The area includes three buildings and a car park.
Two of the buildings were demolished yesterday to make way for a green area to be used for recreation.
However, the building on the corner of Tennyson St and York Pl would remain untouched because an application had been made by the Historic Places Trust in Dunedin to make it a category 2 historic building, he said.
It is believed to be of historic importance because it was where prominent New Zealand artist Colin McCahon was trained.
The building would accommodate five new classrooms, he said.
It was also hoped an administration block and entrance way could be created in Tennyson St where drivers could pick up and drop off pupils with ease to avoid congestion in Rattray St, he said.