The RDA is investing a total of £31.5 million in the project to regenerate St Austell town centre, with David McLean Developments investing the rest.  The landmark deal legally commits David McLean to building the development and providing the rest of the funding and the RDA to part-funding the scheme.

Now that the deal has been signed the town centre cinema will be demolished in September with a brand new state-of-the-art four-screen cinema to be built in its place by autumn 2008.

In addition Sir Robert McAlpine, the scheme's main contractor, will start major excavation work in early October, to make way for new shops, bars, cafés and restaurants, as well as an 500-space underground car park and 70 apartments.

Richard Dean, managing director of David McLean Developments, said: "This agreement is a milestone in the regeneration of St Austell and formalises the commitment that we and the RDA have had to this project since day one.

"With contracts now signed we will soon be in a position to announce some of the exciting new retailers that we already have lined up to take space in the new development."

From this week demolition contractors Gilpin will move back on site to remove the remaining foundations and retaining walls.

Up to 200 people will be employed during the construction phase with local materials and labour used wherever possible.

Building work on the scheme is expected to take two years to complete.