The first stage of demolition will destroy the old Mathilda Avenue parking structure. After that, the former Chevy's and Valley Credit Union buildings will come down. Much of the work is focused on the section of the parking structure closest to the Macy's building.

Sidewalks on Mathilda and Washington avenues have been closed to pedestrian traffic because of the work.

Demolition began symbolically on Aug. 3, in a kick-off ceremony that left part of the upper deck of the structure in rubble. Further work was delayed as the city processed permit applications. But after the permit was issued, wood fences went up around the site to contain dust and debris and to close off the parking lot.

During demolition, parking will still be available on the other side of the mall, in the Macy's parking lot next to S. Murphy Avenue.

When finished, the "lifestyle center" will include one million square feet of retail space, almost 250,000 square feet of office space, almost 300 homes for sale and a movie theater.

"We're very happy to see it started and looking forward to having the first phase of it down before Thanksgiving so it does not disturb our downtown businesses during the holiday season," Sunnyvale communications officer John Pilger said.

For information on the project, visit http://www.downtownsunnyvale.com/redev/home.htm