But council officials are still negotiating to acquire two of three High Street buildings needed to construct the river link archway, which will be a cornerstone of the finished precinct.

Councillors voted last July to begin talks with the owners of 398 and 400 High Street, Bailey’s Jewellers and Newlook Eyewear, but negotiations are still going more than a year later.

The building owners did not want to comment on the matter when the Mercury contacted them yesterday.

But they did confirm negotiations were continuing.

Council has already bought the third building.

Stage two will involve the demolition of all three buildings to make way for the archway that will link the revamped High Street lifestyle precinct with the bank of the Hunter River.

A council spokesman said construction on the second stage would begin in mid- 2016.

But he would not comment on whether ongoing negotiations over the two High Street properties would affect the start work date.

“Component two of The Levee ­development has commenced,” he said. 

“Following the recent execution of the funding deed of agreement, consultants have been engaged for the further development of the river walk and links concepts, and finalisation of the river link building design.

“It is envisaged that contract works on component two of The Levee development will commence in mid-2016.

“Council has purchased one of the three buildings required for the construction of the river link building with negotiations continuing for the purchase of the other two sites.”

Council received $9.9 million in state government mining royalties from the Resources for Regions fund in March to complete the second stage of work.