A report to the meeting from council strategic advisor Ben Burnand said the buildings from 10-24 Dive Cres were in such poor condition that they could not be leased.
''The council has identified Dive Cres as a precinct within the city centre with long-term redevelopment potential.''
Burnand said the earlier than scheduled demolition of the buildings would provide short-term off-street car parking while the new parking building in Harington St was constructed.
The $252,000 to demolish the buildings would be funded from the council's parking account and not rates. The $35,000 to establish the carpark would be funded from the council's renewals budget.
Burnand said the carpark was expected to return $40,000 a year.
Tendering the demolition and demolition was expected to take three to four months and establishing the carpark three to four weeks.
The committee was told there was asbestos in the buildings to be demolished and the building leased to Iron Design, but not in the Fixation Coffee building.