The dismantling of the Te Puna Memorial Hall is under way as part of the new $5.25 million roundabout being built at Te Puna.

The two-lane roundabout will replace the Te Puna/ Minden Rd intersection just north of Tauranga.

The work on the area for the roundabout started in May and could reduce the number of crashes at the spot by as much as 80 per cent, according to the New Zealand Transport Agency.

Work would be split over two construction seasons with work due to be completed by mid-2017.

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The Te Puna Hall Committee has been fundraising for the new hall, which should be finished by March next year.

The NZTA would fund the building of a new hall on a like-for-like basis. Fundraising would allow a slightly bigger hall to be built to take the community into the 22nd century.

The roundabout was part of a $12 million package of works that had been rolled out to boost safety on State Highway 2 while a long-term plan was finalised.