Director of regional activation Michael Keys said council had now resolved delays in negotiations with the contracted building company, as well as delays in the community consultation process to come up with the design of the future playground.

He said contractors this week moved onto the site of the Riverside Stage 2 project, which will integrate the former St Michael's Oval and the caravan park site into a large public recreation space with container food outlets and a "regionally significant" playground.

The NSW government has provided $5 million, the federal government has contributed $3.08 million and the council will put $1.85 million towards the project, which was originally set for completion by the end of 2020.

Council then indicated the project would be completed by the start of 2022 but council business papers have revealed a new timeframe of mid-2022.

"The delay was in trying to finalise the design as well as the pricing to make sure that we can get the right elements included in there and also keep the price below budget," Mr Keys said.

"We've now confirmed all of that, contracts have been signed, we've got workers down on site. [There's] some initial site security and setting up and hopefully that project will be fully under way in the next couple of weeks.

Councillor Vanessa Keenan said it was exciting to see work begin on such a significant project.

"Traditionally we turned our backs on the river and now we've started to see activation of that area. You can see how much it means to people at all times of the year. It's really such an important part of our community," she said.

"The community doesn't expect us to cut corners for an arbitrary date, the community expects us to deliver a quality project and a quality facility that makes best use of ratepayer funds and grant funds."

Councillor Tim Koschel said it was disappointing the project hadn't been delivered on time, but the delay would lead to a better outcome because council could "make sure we're getting it correct".

"With such big projects for Wagga it's better that we do take the time to get it right," he said.

Councillor Daniel Hayes agreed, saying it had "taken some time" to ensure council was meeting community needs as much as possible.

"It's about getting it right and getting the best price. High standards take longer and negotiations take longer than we would all like, but it's about ... the best outcome," he said.