A site office was set up on The Levee late last week with demolition of the three properties, including the former Bailey’s Jewellers site, on Tuesday morning.

In August Maitland councillors endorsed the head construction contract for the Riverlink Building – the key feature of the $20 million revamp of the city’s mall precinct, now known as The Levee.

The Riverlink Building will be an archway for pedestrians that connects High Street and the city centre to the bank of the Hunter River.

Maitland council civil engineering project manager Greg Blaze said the project was expected to be complete by the end of 2017.

“Once the project begins there will be limited impact on pedestrian and vehicular traffic in the precinct as construction activity will be contained within the site,” he said.

Redevelopment of some lane ways off High Street began earlier this year.

Maitland Council is using a Resources for Regions grant of almost $10 million to fund the second and final phase of work.

Manager of Noni B Maitland Michelle Sales said the start of construction had not disrupted trade at her business but she was concerned about the city centre losing some valuable car parking spaces as a result of the works.