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Demolition has started of a church house in the grounds of St Enoch's Church, at the corner of Centennial Ave and Dunorling St, which, along with the church hall next to it, is expected to be cleared from the site in the next couple of weeks.
Another house on the site, Ranby House, will be moved to another site and then sold.
The $2.6 million, 1054sq m Alexandra Community House will provide a centre for social service agencies and education, arts and crafts groups.
Mr Sutherland said it was hoped the entire complex would be finished by the end of the year.
The builders were salvaging as much material from the house and hall as possible and some features would be included in the new complex, she said.
The Alexandra Men's Shed is also temporarily on the site.
Spokesman Neil McArthur said the group had received funding to have the shed relocated, and it would be moved to its new location at Molyneux Park once the site had been cleared.