SEVENSTONE is set to go ahead in its original form bringing 700,000 sq ft of new shops and a relocated John Lewis store to Sheffield city centre.
A thousand jobs are to be created.
The announcement follows talks between Sheffield Council, John Lewis and developer Hammerson to revise the scheme after previous plans to save money by scaling down the development.
But in its trading results to the stock market, Hammerson said construction will not now begin until 2015, a year later than forecast.
Coun Leigh Bramall, Sheffield Council’s cabinet member for business, skills and development, said: “We are working tirelessly to kick-start the regeneration of the city centre through the Sevenstone development.
“The scheme has stalled in recent years, in part due to the continued weakness of the global economy, but we want to do everything we can to make this happen.
“We want the city centre to flourish, we want to deliver our ambitions, boost the city region’s economy and provide net 1,000 jobs for the people of Sheffield.”
Sheffield Council said further work on both the revised scheme and costs is taking place ‘behind the scenes to try and establish a viable project’.
Further meetings are to take place this month.
The council is keen to ensure work starts on the project as soon as possible to ensure that it does not lose the chance to borrow £30 million of future business rates, which has been authorised by the Government.