Work has begun on the $2million upgrade to Rotorua's Eat Streat and business owners are excited about its future.
More than four years after being turned into a temporary facility, work to redevelop Eat Streat into an all-weather dining precinct began last week.
The Rotorua District Council project will include a covered central walkway with retractable roofing over dining areas.
Underfoot, a distinctive geothermal heating underlay, with enhanced lighting, will keep the area warm during winter.
Council Inner City Enterprises manager Nick Dallimore said the al fresco dining area had been designed to complement Tutanekai St and the Lakefront, as part of the city's CBD revitalisation project.
Work is expected to be finished by December.
Cafe Ephesus owner Niyazi Gunaydin said he could not wait until the project was finished.
"It's going to be very good for Rotorua and our businesses.
"When people are sitting outside in the new space it will look much better," Mr Gunaydin said, adding it had been a long wait but he was glad work was under way.
"They've done really well so far and it's not going to be an easy job."
Brew Bar co-owner Paul Croucher said it was an exciting prospect for business owners and customers.
"It's a challenging job to do something like this without disrupting business but I think the communication with us, the council and contractors has been really good," Mr Croucher said.
The opportunity to hold concerts outside his bar and under cover is a big bonus for Scotty's Bar owner Scott Toner.
"And it's the best time of year to be doing the work.
"I've been showing people the pictures and plans of the finished product and when they see it they really love it.
"It's a challenging job, but we'll get there and I'm sure it will look great," Mr Toner said.
The contract for the work was given to the Tauranga branch of Auckland-based construction firm Watts and Hughes.
Mr Dallimore said Watts and Hughes used mostly Rotorua-based sub-contractors and had a proven track record of work on the Civic Theatre and Rotorua Museum projects.
"Theirs was the best on price and on other attributes that we considered.
"They have the ability to work particularly well with all parties, on time and on budget," Mr Dallimore said.