An excavator moved on to the site on Monday and began clearing and levelling works.

It is two years since work was scheduled to begin at the centre, but plans to open the facility by late last year were put on hold as builders Thompson Health Care battled Kempsey Shire Council over water and sewerage contribution rates.

The parties have now come to a compromise and company CEO Doug Thompson will turn the first sod at the site with mayor John Bowell next Tuesday, July 7.

“It has been delayed for a lot of reasons,” Mr Thompson said.

“The final reason was the negotiations with council over our contribution rates.

“In the end we’ve come to a compromise that neither of us is happy with, but at least that means it was probably fair.”

Once complete the facility will employ up to 130 locals in positions as varied as nursing and administration to cleaning and catering.

Plans are also afoot to lodge a development application with council to build around 90 independent living units on the site once the new centre is complete.