Access to the Mr. PG will remain in place as work has begun on two apartment buildings behind the mascot.
It can be reached via the access road from RecPlace Drive or from the sidewalk that runs along the south side of Highway 97, the City said this week.
The buildings will provide 137 units. The site, at 2620 RecPlace Drive, was sold by the City for just over $2 million.
The developer, Broadstreet Properties, also built the neighbouring apartment, which opened earlier this year.
The sale of City lands have topped $4.1 million so far this year.
In March, 35 building permits for $14.5 million worth of construction. Building permits for eight new multi-family housing projects have been released so far this year.