The proponents of a small bar in the historic Bank Corner building hope to open late next month after winning council approval.
Prudence Farquhar and Byron Marzinotto, who lodged a development application for the wine and cocktail bar earlier this year, have started work to convert the building's ground floor.
The couple, who also operate Blue Kahunas - a small bar in Hunter Street Mall - said they were excited to have the project underway.
"It's the first small bar to be approved post the small-bar trial," Ms Farquhar said, in reference to the city's recent six-month and now extended trial of relaxed liquor-trading restrictions. "Everything is falling into place, construction is happening and we can't wait to open."
The venue, to be known as Bar Mellow, will have a 120-person capacity.
Ms Farquhar said current COVID restrictions would not halt an opening as under the one-person-per-four-square-metres rule the venue could hold 50 patrons.
"We're hoping for late August, early September," she said. "Fingers crossed. There's a lot to do but hopefully we can make it work."
Liquor and Gaming is yet to issue a small bar licence.
The Bank Corner building was a Bank of NSW branch between 1938 and 1970.
