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With demolition work completed, crews on Friday began building the $150 million office tower project for Daimler Trucks North America on Swan Island.

The event drew local and state dignitaries, including Gov. John Kitzhaber, and signaled the start of underground work that will precede erection of a nine-story, 265,000-square-foot tower and four-story parking garage, along with other site improvements.

Crews from Hoffman Construction Co., the project’s general contractor, and its subcontractors demolished a sprawling, 1970s-era former shopping mall that had served as office space on the 10-acre site.

The tower will take up considerably less acreage, said Josh Palmer, Daimler’s project director.

“By going up, we’re going to open up a lot of this site around the building,” he said. “It will be much more aesthetically pleasing and usable for the public and employees.”

Foundation work, on a previously dredged site, will require several months and use steel piles to stabilize the soil, Palmer said. Stone columns along the river will prevent movement of the earth in an earthquake. A stone column foundation will be built for the parking garage, he said.

A Leadership in Energy and Environmental Design platinum rating will be sought for the project, which will feature a number of highly energy efficient elements, Palmer said. Some are photovoltaic systems, low-consumption water fixtures and an efficient heating, ventilation and air conditioning system.

“It will be one of the top 1 percent of all office buildings in the country,” he said.

The project also will enhance a one-mile portion of the Greenway Trail, providing greater riverfront access for the public, Palmer said.

At the project’s peak, more than 400 craft workers are expected to be on site, according to Hoffman Construction. Approximately 1,200 positions will be filled throughout construction.

Ankrom Moisan Architects is providing design services and Inici Group is serving as the project manager. The project is expected to finish in the first quarter of 2016.