The old St. Augustine Parish Hall built in 1915 was demolished on Wednesday.
The hall was demolished to make way for a new four-story building.
It will include offices, meeting rooms, and a conference center.
The estimated project, which includes pedestrian and improvements to Ochoa Street, comes in at $17.5 million.
Ochoa Street will remain open to vehicle traffic.
Underground construction work will begin April 2017, and vertical construction is expected to begin in June 2107. It's anticipated that construction will take about 18 months to complete the project.
Funding has been raised by private donors through the Catholic Foundation of Tucson and other means.