Physical work is now under way on the first major project of 2007 inside Bath's core shopping area.
Shires Yard between Milsom Street and Broad Street is to be transformed over the next two years by owners the L&R Group.
Its plan is to uncover existing old buildings, reopen The Octagon, make use of courtyards between the rear of buildings, create new entrances to the complex and use the natural slope between the streets to develop multi-level shopping.
The work should take about two years to complete.
Over that time, existing shops will be smartened and the whole area will be rebranded as Milsom Place.
The redevelopment plans have been in the pipeline for more than two years and work finally started on site two weeks' ago.