Works have begun on the Salvation Army's new Warrnambool Mission Centre.
The city's former indoor tennis centre, on the corner of Mortlake Road and Breton Street, is being demolished this week to make way for the purpose-built facility.
BDH Constructions began demolishing the existing building on Monday.
A number of people stopped to watch the demolition works, with a number commenting it would be a great site for the new facility.
Major Brett Allchin, of the Warrnambool Salvation Army, said the organisation first started searching for a new home 11 years ago.
"The local members of the Salvation Army have been internally fundraising during this time," Mr Allchin said.
"This has been supported by specified bequests made towards the construction of a new building, as well as funds raised by the upcoming sale of our buildings on Lava and Henna streets. No public donations were utilised.
"We are excited to see this now commence, and are looking forward to serving our community through this purpose-built building.
"It will be a new hub to support and bring hope to those who need it most."
Mr Allchin said the demolition part of the project was expected to be completed by the end of the week.
The purpose-built facility will comprise a main worship room, a multipurpose room and youth hall, a parents' room, play area, kitchen, servery and storage rooms, a staff lunchroom and office and interview rooms.
Mr Allchin said the Salvation Army outgrew its base on Lava Street about a decade ago.
"We're very excited."
Mr Allchin said staff were "bursting at the seams" at the Lava Street site. He said the organisation was in the process of selecting an agent to list it with.
He said the build was expected to take up to a year to complete.
"We've seen a few project schedules and the majority have a completion date of early June, 2023," he said.
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