The second phase of a £145m regeneration scheme in Gosport, Hampshire, has received planning permission from the local authority.
The Rowner Renewal Partnership, whose members include Gosport Borough Council, Hampshire County Council, the Homes & Communities Agency, and Taylor Wimpey, will demolish run-down housing and retail buildings and replace them with modern homes and facilities.
The plans include 101 new flats, a 10-storey residential tower, a Tesco supermarket, three smaller retail units, and an area of open space with a children's play area.
The first phase of the eight-year Rowner Renewal Project includes 219 new homes and work began in March. Demolition is now complete and new building work has begun at the southern end of the site along Howe Road. The first homes are expected to be ready by the turn of the year.
The second phase involves the areas around Darwin Way, Livingstone Court and Raleigh Walk. The completion target is between 2012 and 2013, and demolition is expected to start next year.
Leader of Gosport Borough Council, councillor Mark Hook, said: "This marks a significant step forward on the eight year project. Phase 2 has at its heart the centre of the new Rowner community – creating new retail space and new job opportunities for the residents of Rowner. Job creation is central to the regeneration and the granting of Phase 2 is very welcome news, not only for Rowner but for the economy of Gosport as a whole."