The removal of the long-empty former supermarket building on the corner of King and Stewart streets is well under way.

Government housing agency Kāinga Ora says it could be replaced by a four storey structure.

Kāinga Ora Bay of Plenty Regional director Darren Toy says the demolition is expected to be completed before the end of the year.

'The building is being demolished, and where possible deconstructed, so that building materials can be reused.”

Plans are to build a combination of apartments and houses on the site to help meet the urgent need for more warm, dry and modern homes in Whakatāne.

The design for the was in progress, but yet to be finalised.

'Early plans suggest a mix of single level homes, three storey apartments and some street level commercial space will be built. The complex could provide homes for about 50 whānau.”

The site had previously been consented for the building of 42 three storey apartments with three bedrooms each.

However, investors pulled out of the development and owner Alan Unsworth sold the site to Kāinga Ora in November last year.

Toy says the team working on the project aims to lodge resource consent early in 2023 and building consent around mid-2023.

'Before then, Kāinga Ora will be connecting with the Whakatāne community to share plans and seek feedback.”

He says construction could start mid-2023. By early 2025, "we expect that a number of Whakatāne whānau who are living in cars, motels, garages, and other unsuitable living spaces will have a place to call home and from which they can build their lives."

Local democracy reporting requested information on the reasons behind providing commercial space and Kāinga Ora Bay of Plenty, acting regional director Roxanne Cribb says alongside delivering more public and affordable housing, Kāinga Ora was charged with leading and co-ordinating quality urban developments that connected homes with jobs, transport, open spaces and the facilities that communities needed.

'In Whakatāne our original plan was to build a three-storey building on the King Street site to house approximately 50 whānau. However, when considering the need for higher ground floor levels to meet the district plan flood management considerations, and the fact that the development is in a commercial part of the city, other options are being considered.

'This includes building to four stories with no change to the number of new homes to be provided. First preference for any commercial or office space built would be to accommodate social or health service providers.

'This would provide Whakatāne with a good urban development outcome. However, as specified earlier, plans are at a very early stage and Kāinga Ora will be connecting with the Whakatāne community to share initial plans and seek feedback.”

-Local Democracy Reporting is Public Interest Journalism funded through NZ On Air