The £45 million Tindale Crescent scheme in Bishop Auckland will regenerate land which has been vacant and derelict since the closure of Warner Electrics in 2003.
Around 800 jobs are expected to be created both during the development phase and at the scheme once it is fully operational.
The development will include a 60,000 sq ft Sainsbury’s store, a 58,000 sq ft leisure complex, with a six-screen 1,000-seat multiplex cinema, along with a bingo hall and ten-pin bowling alley and two restaurants.
The scheme also includes a brand new Northern Premier League standard stadium for Bishop Auckland Football Club .
Work is expected to begin early in the New Year.
The delivery schedule for the overall scheme is around 15 months, with the stadium expected to be ready in time for the 2010/11 season, when BAFC will play its first ‘home’ fixture since 2002.
Duncan McEwan, director at Terrace Hill Group said: “We anticipate being on site in early in the New Year and look forward to watching the transformation of this derelict site for the benefit of the community.”