Indiana State Fairgrounds (wibc.com photo by Mike Corbin)

Demolition has officially begun on the Pepsi Coliseum at the Indiana State Fairgrounds.

State Fair Executive Director Cindy Hoye says crews are removing interior seats and concrete and installing pylons. The State Fair is awarding about $47 million in construction bids for the the $63 million project which includes $53 million for the coliseum upgrade and $10 million for the new arena.

So far, officials have awarded three bid packages on the project with two more to go. Hoye says the arena will be ready for the 2013 Indiana State Fair. She says the renovated coliseum will be ready for the 2014 fair. Hoye says 2013 will be the "Year of Popcorn" and theme for the fair will be "Fun at Every Turn" at the fair.