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City Missioner Matthew Mark was excited by the potential the new complex will have to "change lives".
"Homelessness, food insecurity, addiction, mental health and isolation are major social barriers to an ability to live successfully in our community," he said.
"This is our response. We are creating what will be a purposeful and transformative space in the heart of our city."
Over the next two years, Mark said the mission will build a "forward thinking, integrated complex that evolves and enhances the services we already offer".
Currently the site houses some old buildings which are used as housing flats, a small hole-in-the wall café, and the Hereford Street Op Shop.
The new building will include a 15-bed transitional housing facility, café social enterprise, catering business social enterprise, new Op Shop and warehouse, new self-serve "mana-enhancing" Foodbank and offices for the mission's seven social workers,
"Our emergency accommodation, day programmes, learning hub, residential detox, addiction and mental health services will continue on the eastern side of the campus at 276 Hereford Street," Mark said.
"The redevelopment helps us expand our help beyond the immediate crisis work we will always do and give our clients new skills to be successful in finding permanent housing and find work.
"The social enterprises allow us to offer important real-life work experience opportunities for our clients.
"Our self-serve social supermarket Foodbank will give clients more choice and dignity and will also have an educational aspect in helping them understand good food choices for better health."