The Anglican church and hall on Whanganui's Durie Hill is to be demolished and the land subdivided into three sections.
Windows have been removed, and trees that are in the powerlines will be cut down.
No services have been held at the church for at least 10 years, but the buildings were sometimes used to host the Durie Hill Village Market.
Retired bank manager and Whanganui Anglican parishioner Kevin Gaskin was appointed by the church to come up with proposals for the property.
A lot of time and thought has gone into it, Gaskin said.
The property was offered for sale by tender two years ago. The only offer was for the value of the land, minus demolition costs.
Gaskin looked at alternative uses, such as rental and refugee housing, but the church was unable to build housing itself.
Instead, it has contracted Sentinel Homes to demolish the buildings, subdivide the land and connect services to it. Sentinel will then offer "three sunny sections", with land and design packages, for sale.
Money from the proceeds will go to the church, and can only be used for church property. It could pay for earthquake strengthening, for example.
"We are trying to get as much equity out of the property as we can," Gaskin said.
"The Anglican Church has got about 11 church buildings in Whanganui. Our maintenance and running costs are just going through the roof."
The demolition is the latest activity in a rethink of the Anglican Church's presence in Whanganui. It started in about 2015, in reaction to dwindling congregations.
Since then the four Anglican parishes have been merged into one, with most services now held at Christ Church in the central city.
Another Anglican church with an uncertain future is St Laurence's in Gibson St, Aramoho. It has been offered to a Lower Hutt school for removal.