Work has begun on transforming a 1960s shopping centre to make way for housing, retail and new green spaces.
York Place in Newcastle-under-Lyme was initially slated for demolition to be replaced by two buildings and a public square.
However, under a revised scheme, Newcastle-under-Lyme Borough Council said it was cheaper and quicker to repurpose the existing framework of the building instead.
The authority said the main building phase of the project would start in a few months’ time.
The existing structure of the building will be retained, and is being stripped back in preparation for construction to begin.
The building was previously described as “basically horrible”.
Council leader Simon Tagg said he was delighted that the authority had been able to attract funding to renew and reshape the town centre.
“It’s fantastic to reach this physical milestone at York Place,” he said.
“Remodelling the building – which is quicker, cheaper and much better for the environment than demolition – will enable better connectivity between a redeveloped Ryecroft and the High Street Ironmarket area.”
He said it would also provide greater footfall for local businesses in that part of the town.