Hinckley and Bosworth Borough Council wants to sell the land to a developer.
Severn Trent apologises for disruption but is hopeful the works will finish by the end of the week.
Officers are served with notices of investigation over allegations of gross misconduct after Drew Kenney died, aged 24.
The family of Drew Kenney have been left "heartbroken" after he died during a mental health episode.
The mobile food pantries need to secure new funding by the end of March to avoid closure.
A hand car wash and car repair workshop at the site will be demolished to make way for five houses.
A 23-year-old motorist was taken to hospital for treatment, a police statement says.
The firm has had its fine reduced to £8,000 after a hearing at Leicester Crown Court on Friday.
Leicestershire Police sealed off two properties "for safety reasons" during initial investigations.
