Construction has started on a two-storey building estimated to cost more than $2 million.

The complex is being built on a parcel of land next door to where its retail shop at 13 Peter Street was destroyed by fire in April, 2012.

Vinnies’s Wagga diocesan central council president Don Jones said the charity had been operating out of several leased premises since the devastating fire.

“We will be home again,” he said.

“The work environment will be beautiful”.

The new building will be on a 1500-metre parcel of land, which is 50 per cent bigger than the old block.

Wagga central council executive officer Mike Riley said the new building would consolidate three operations currently working out of leased buildings – administration, retail and storage.

Downstairs will be the retail store and an area for storage and sorting of donations, such as clothing, books and bric-a-brac.

“It will be a flagship store for the diocese,” Mr Riley said.

“We get 50 per cent of our income to help the disadvantaged from our retail store.”

The sorting and distribution operation will look after the six shops in central council area – Turvey Park, Ashmont, Peter Street, Coolamon, Temora and Junee, said retail area manager Matt Kanck.

Upstairs will be an administration area for 11 paid staff and a large kitchen area for them and 35 volunteers who work in the retail store and sorting on any given day.

“It will really create a pleasant working environment for our hard-working volunteers,” Mr Kanck said.

In its central council area, Vinnies distributes more than $400,000 worth of financial assistance every year.

“That is why this site is so important,” Mr Kanck said.

“We are really grateful to the people who donate to St Vincent  de Paul.”

Vinnies’s care and support service will stay in Edward Street.

Mr Riley said the new retail store was expected to open in mid October.