Council documents reveal a Darwin building contractor was first selected to undertake the park upgrades, popularly known as 50 cent park for the price of $3,186,566.

Council had about $3 million in the kitty, the money left over from the $5 million provided for the CBD upgrade by the NT Government several years ago.

Minutes from a confidential council meeting held on June 25 show the aldermen were keen to award the work to a local builder.

Katherine building company, Katherine Constructions, won the tender with its $3,102,970 bid with a unanimous vote.

The council minutes also make reference to the transfer of $295,135 from council's reserves to "provide for the total estimated cost of works".

Council had transferred $1.5 million from the CBD upgrade works to finish the long overdue hot springs project.

Architects had been paid about $400,000 to come up with plans for the CBD which were rejected although the same firm was kept on to design the more limited park upgrade.

Mayor Fay Miller made a public announcement several weeks after the confidential meeting appointing Katherine Constructions for the project.

"This is a positive boost for our community and the appointment of a local contractor will ensure the financial flow-on of this project will have the greatest benefit to our local community," Mayor Miller said on July 10.

Construction on the NT Government sponsored project is well underway with work anticipated to be completed by Christmas.

The stated aim of the project is to "activate the CBD".

There will be more shade, water misters, a "portable" cafe, and a huge audio visual display.

A toilet block will be built in Railway Terrace as well.

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