Kerry County Council says design works for the second phase of the former Dennys site are underway.
The 2.3-acre site was donated to the people of Tralee by Kerry Group in 2014.
The local authority says the works by contractor Loftus Demolition and Recycling Limited are substantially complete.
In a question at the recent Tralee Municipal District meeting, Cllr Toireasa Ferris claimed works at the Island of Geese site have gone over budget.
The council said this is not the case and it is now entering the next phase of the project and is examining the best return from the remaining funds.
A contractor for the second phase of the works is expected to go to tender in the second quarter of this year.
The Southern Regional Assembly has granted the council an extension of time for the development.