Work is due to begin next week on the demolition of part of an industrial estate in Worcester.
Worcestershire County Council said removal of a brick tower and corrugated unit at the city's Shrub Hill Quarter marked a major milestone in its transformation.
When completed, the regeneration of the site would provide more than 500 new homes and up to 5,000 new jobs, the local authority said.
The work has been supported by the government's Brownfield Land Release Fund.
Councillor Alan Amos said the scheme would unlock a "once-in-a-generation opportunity" to create "something extraordinary" for Worcester.
"Shrub Hill Quarter will become a place where people want to live, work, and spend time," he said.
The demolition and site clearance is expected to take up to eight weeks.
Temporary closures of a nearby footpath and some roads will be in place, the authority said.
Clear signage and diversion routes will be in place, and businesses in the area will remain open as usual.