Work is due to start in Bridgwater on a new hotel.
The old Co-Op and other buildings in the Eastover area are to be demolished to make way for the hotel - which will have more than 100 bedrooms.
The plans were agreed by Sedgemoor District Council in July 2013 - it says the development will transform the area.
The Heart of the South West Local Enterprise Partnership allocated £4.5m of funding from the Growing Places Fund to the development. The fund was designed to create jobs and boost economic growth.