DEVELOPERS are celebrating a "watershed" moment in Chelmsford's history after a £64 million project to build a huge retail park in the heart of the city got under way.
Aquila Holdings Ltd aims to unveil a flagship John Lewis store, a new cinema, 25 shops and four restaurants by summer 2015 in Bond Street, behind Debenhams.
On Monday, contractors started work, which will shortly include the demolition of a 1960s NatWest bank building.
"It's a watershed moment really in moving this scheme forward," said Aquila development consultant Neil Ridley.
"The next step in the process is agreeing terms with tenants – there are some very big names but it would be improper to breach the commercial process.
"There is plenty of stuff we can't talk about – but certainly in due course."
Phase two of the project follows the development of the Hub, a block of apartments and restaurants including Loch Fyne and Prezzo, on the banks of the River Chelmer.
The shopping development will provide the city with an estimated annual boost to the economy of £100m and 450 new jobs.
Aquila managing director Paul Hirst said: "We are very pleased that we can start work on the scheme and get rid of what is certainly an eyesore in the centre of the city.
"It removes a building which has been vandalised extensively and it allows us to begin work on the drainage system by taking down these two buildings."
Contractors Heard Demolition will also tear down the back of an old Barclays bank that extends from the High Street, but will not touch the front, which is listed.
Mr Hirst and his colleagues hope to have diverted drainage and electricity cables below the plots by autumn.
Wrecking-ball destruction of the back part of the 30,000 sq ft NatWest building will begin in two weeks' time and continue for about another six weeks.
Workers are currently removing all the broken glass from windows.
"There seems to be a genuinely positive feeling that things are beginning to happen," added Mr Hirst.
"We did hope that we would be a few months ahead of this and we hoped we would complete it by the end of 2014 but the programme has slipped, so we are looking at the summer of 2015."
John Lewis bosses had planned to build one of its At Home department stores, which would have created 200 new jobs, but they changed their minds and decided on a complete store with a beauty hall, fashion floor, cafe and electronics department, creating 350 jobs instead. It will be the firm's third shop of this kind in the country.
City council leader Roy Whitehead, who worked tirelessly to persuade John Lewis to come to the city, said he is looking forward to seeing the NatWest building being demolished.
"I am delighted because it shows that the John Lewis store is getting closer and I think that NatWest building is one of the least loved sites in the high street.
"There won't be too many people crying."
Mr Whitehead said it was understandable the project was delayed in the economic climate, and added Chelmsford would feel more like a city come 2015, along with a new Waitrose supermarket.
"We now have other people who want to come into the city who didn't want to before.
"It's a milestone moment."