Cobblestones removed due to the redevelopment of the old City Focus will almost all be reused in Manawa - Heart of the City - by the time work is completed.
The final stage of redevelopment work began a few weeks ago with both roads into the area closed off by contractors with fencing and road closure signs up around the Hinemoa and Tutanekai Sts intersection.
According to the Rotorua Lakes Council, the design was aimed at improving vehicle movement through the intersection, clearing sight lines in all directions and ensuring a focus on people, enabling better use of the space.
It is the third and final stage of redevelopment of the area with the project approved following feedback from inner-city stakeholders and the community.
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Fletcher Construction agreed to a fixed price of $1.135 million for the third stage.
Work to date has cost $231,000 and the project will be completed within the budget agreed in the long-term plan, the council said.
Noise and disruption would be kept to a minimum, it said.
The council's strategy and partnerships group manager, Jean-Paul Gaston, said work was on schedule to be finished for a mid-August opening.
"The contractors are currently removing the existing cobblestones, concrete structures, planters and relocating services," Mr Gaston said.
"About 90 per cent of the existing cobbles will be reused in the pedestrian areas within Manawa and the remaining 10 per cent are either too old or damaged to be reused.
"The next phase will be the installation of new underground services and formation of the concrete surface features," he said.