A 30-tonne excavator has been used to safely break down the dilapidated Joynton Smith building in Joynton Avenue at the old Royal South Sydney Hospital site in Zetland Sydney, to kick start an $8 billion development project.
Lord Mayor Clover Moore said Green Square was first earmarked for development in the 1990s.
"Green Square will provide 20000 new homes; 22000 jobs; and house 40000 new residents," the Lord Mayor said.
"There will be new community facilities, improved transport links and retail and social precincts to transform Green Square area into one of the city's key destinations.
"We've earmarked four heritage buildings for community use and they will be fitted out to help reduce energy and water use and costs across Green Square."
Fourteen derelict or condemned buildings will be demolished by the end of this year after asbestos and lead-based paints are removed by a specialist contractor.
Once the demolition is completed, work can start on community infrastructure, including; a community hall and theatrette Multi-purpose spaces and meeting rooms; a community shed, artists' studios and workshops; and a park named after Matron Ruby Grant, a pioneering nurses' advocate.
A library and community centre will be built in the plaza of the 14-hectare Green Square Town Centre site. In the meantime, the library is on the ground floor of the Tote building in Joynton Avenue.
Environmental technologies to be installed include; a low-carbon energy system, called trigeneration, which uses natural gas to produce electricity, heating and cooling for surrounding buildings.
According to the City of Sydney the project is more than twice as energy efficient as a coal-fired power station and reduces greenhouse gas emissions by 40 to 60 per cent
A stormwater cleansing system to provide non-drinking water to flush toilets and irrigate parks and gardens, covering half the site's water usage.
The City is revising the current planning controls for the Green Square Town Centre.
If endorsed by Council they will be forwarded to the NSW Government for approval.
Development applications for the Green Square site are expected to be lodged later this year.
The City is also working with the NSW Government to improve public transport in the area, with the Lord Mayor calling for light rail to Green Square with more frequent bus services in the short-term connecting to the Green Square and Mascot railway stations.