Heritage Mall properties are being bought ahead of work to overhaul part of the city centre.
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A Maitland City Council spokeswoman said council had bought the building at 396 High Street and would need to acquire more properties for The Levee project to be developed according to the proposal.
She did not specify how many properties council would buy.
She said councillors resolved last year to fund the second stage of The Levee project with a combination of grants and funds from council asset sales.
Stage two is expected to begin in the second half of this year when funding has been obtained.
Negotiations on the final terms of the contract for the project’s first stage continue between the council and Landscape Solutions.
Councillors awarded the construction tender to Sydney-based company Landscape Solutions on April 1.
A work start date is expected to be announced once both parties sign the contract. It will then be known which end of the mall will be affected by the work first.
Stage one of The Levee project will involve refurbishment of Heritage Mall and part of High Street and is expected to take about 35 weeks to complete.