The iconic landmark has been a part of Cherokee Park since the 1960s.
The city ordered the demolition after it found extensive deterioration making the structure "unstable and in imminent danger of failure or collapse."
Heavy equipment will be set up Monday near the pavilion, but the structure won't be torn down until later this week.
The landmark sits on the park's Scenic Loop.
The festival will include 150 vendors, music, wellness, and family zones, as well as a drag show on the main stage.
The city committee voted against demolishing it.
A fence has been up around the iconic structure for seven months. Now, a petition to demolish it has been filed over structural concerns.
Hogan's Fountain Pavilion closed in May over safety and structural concerns.
Mayor Greg Fischer cited "rapid revenue growth and continued efficiencies" when announcing the surplus.
The city said wooden beams holding up the roof are raising questions about the stability of the structure.