Demolition work is under way on the century-old wharfshed at 2 The Strand this week, as the site is still under confidential discussions by owner Whakatāne District Council.

Former business tenants Gibbos on The Wharf, The Iceman and Diveworks moved out last week and fencing has now gone up around the site.

The neighbouring Whakatāne Sport Fishing Club plans to move its building onto the site. However, some club members have voiced concerns the club cannot afford the move.

The council has confirmed that it is required to compensate the club on termination of its ground lease as part of the terms of that lease.

It would not confirm how much it was paying the club. Negotiations with the club were confidential as they were commercially sensitive.

Club president Hayden Johnston said the move was proceeding, though there were still some issues to be worked through.

The site was under discussion at a public excluded meeting of the council on Thursday.

The agenda for the meeting had one report, titled 2 The Strand Update and included correspondence to the council but no further details were provided.