Demolition work at a huge riverside development in Lancaster is expected to be completed by the summer.
Plans for the Luneside East site in Lancaster will see the creation of a new neighbourhood with up to 327 homes and businesses at St George’s Quay.
Developers CTP Ltd and Development Securities plc started demolition work on the site last year, after receiving £4m of investment from the Lancashire Enterprise Partnership’s Growing Places fund to kickstart the project.
Money invested will be paid back in order to create a sustainable fund for investment in future schemes.
Guy Illingworth, director of Luneside East Ltd and CTP, said: “We are delighted to commence the development at Luneside East. The site clearance phase was always a critical first step.
“The availability of finance for such projects is difficult to access and this phase would not have commenced without the help of the LEP, the county council and city council in providing Growing Places Funding.
“Together with our contractor, VHE, we are focused on delivering the remediation of the site for late summer 2013.”
The site will be developed into a mixed-use new neighbourhood providing homes, business space and landscaped areas.
The focus for the development will be the conversion and refurbishment of a large part of the St George’s works mill building on the quay.
Coun Janice Hanson, Lancaster City Council’s cabinet member with responsibility for economic development, said: “The city council has stuck to the task of bringing this project about over many years and has overcome huge challenges, not least in keeping the project alive after the banking crash in 2008.”