Council is creating a new 150-space off-street car park at the Old Post Office site on Grafton Street.
Work has commenced to demolish existing buildings on the site, with the parking spaces to be completed by October.
Council today resolved to seek expressions of interest from commercial operators to determine if there is industry interest in running the car park and the feasibility of the car park being managed by a third party.
It is anticipated that the car park will provide casual and all-day parking options.
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