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The plans include retail shops, a dining precinct, offices and covered car parking comprising 675 parking spaces.
It involves the redevelopment of the block bordered by Dee, Esk, Kelvin and Tay Sts, with the exception of the Kelvin Hotel and Reading Cinemas.
It is estimated to cost $165million and is a joint venture between Invercargill City Holdings Ltd and O’Donnell CBD Ltd.