It will be built using a rammed earth-based method called Sirewall by the end of the year, with fit-out to be completed by April 2020.
About 90 people turned out for Friday's ceremony, Mr Jones saying it had been a matter of personal pride to be able to direct putea (money) to the project and help rejuvenate the area where he spent his holidays as a child.
"Kawakawa is the waharoa (gateway) to the Bay of Islands. This is long-term infrastructure; it will enable other investors to follow up," he said.
"It will show we do have pride in our history, we want to recover our environment, we want to extend sustainability — that's the kind of tone I want to set from the North."
Deputy Mayor Tania McInnes said Te Hononga, a partnership between the Kawakawa Hundertwasser Park Charitable Trust and local iwi Ngāti Hine, was a great example of a community, local government and iwi working together.
"We always talk about it but we don't always do it well. It will be a fricking amazing building, and it will also be an example of how you can build trust and work together," she said.
Project partnership co-chairman Pita Tipene said the complex would cement Kawakawa's standing as a cultural hub, which it already was geographically, while trust chair Noma Shepherd said she was excited to see construction finally begin after 12 sometimes difficult years.
The lead contractor will be Whangārei-based Harnett Builders, with JS Hepi Contracting making the earth walls. Ten builders work with 16 trainees recruited from around the Mid North, with Far North Holdings managing the project.