Orakei Local Board said it welcomed the news.
"It's exciting to hear that redevelopment of the car park will be happening, and that there will be a fully functioning facility available to the community which local businesses will benefit from with the provision of an additional 20 car-park spaces," Local Board Chairman Kit Parkinson said.
"Orakei Local Board, Remuera Business Association and Auckland Transport have all worked together to get this great result for the community. We are looking forward to working with Panuku."
As it stands, the current car park has 70 spaces on the top deck and the lower deck, which is still open, has 129 spaces.
The upper deck of the two-level carpark is a deteriorating platform that has suffered from water ingress.
Numerous repairs have been made to the platform, but problems remain. The car park was built in 1982.
Auckland Transport had been trying to extend the platform's safe, usable life by limiting the weight it carries.
Initially it banned SUVs, vans, utes and commercial vehicles - any vehicles that weighed more than 2000kg - from the upper deck.
But after many overweight vehicles continued to drive on to the structure, security guards were hired to hand notices explaining the ban.