Work is under way on a major retail centre on the former Nelson Park site in Hastings.
Work to shape the site and prepare building platforms started this week and will take about six weeks to complete.
The Warehouse and Mitre 10 Mega have been confirmed as anchor tenants for the Charter
Hall development, Home HQ.
Charter Hall Group development director Mark Jacobs said the earthworks contract had been awarded to local business Phoenix Contracting.
Local contractors would also be invited to tender for construction of The Warehouse, to start later this year.
The Warehouse is expected to open at the end of next year and Mitre 10 Mega in 2012.
Mr Jacobs said there had been strong interest from other retailers in the development, with 4000sq m of space earmarked by tenants.
Hastings Mayor Lawrence Yule said the start of physical work would give people confidence that the development was coming to reality.
Nelson Park was sold by the Hastings District Council to Charter Hall in 2007 for $18.6 million.
