The first shovels will finally sink into the ground Tuesday as construction begins on the NOW Canada supportive housing complex for women and children.

The project, scheduled to begin in the spring was delayed several months while several South Pandosy merchants battled with the city over parking.

Merchants in the area dropped a proposed lawsuit against the city at the end of September, saying they would work with the city on parking solutions in the neighbourhood.

The supportive housing complex is being built on what was the main parking lot in the area, resulting in the loss of 44 of the 90 stalls in the parking lot.

"I'm really happy to finally have the building of this facility move forward, because there are so many women and children in need of this accommodation," says Mayor Sharon Shepherd.

"I'm not sure what the time line is for the building. Hopefully they can get some work done through this part of the season, which will totally depend on the weather."

As for the parking study staff has been working on, Shepherd says she expects it to make its way into council's hands very soon.

"Certainly we have paid attention (to the merchants concerns) and know that there is still work to be done."

The official ground breaking takes place at 11 a.m. Tuesday.