STAWELL - Work is continuing on the redevelopment of Shop 108 in the Main Street.
The unoccupied building is set to become a vibrant community hub.
Northern Grampians Shire Council chief executive officer Justine Linley said the start of the construction phase signalled many exciting developments in Stawell's central business district.
"Over the past 12 months, the CBD has been a hive of activity, with many new businesses opening their doors and others changing hands," she said.
"The work on 108 Main Street will further strengthen economic development in the town by creating an attractive focal point in the shopping precinct."
The site will become a community room, incorporating a meeting space, toilet facilities and a family friendly baby change area.
The laneway leading into the shopping precinct will also be made safer and more accessible.
The redevelopment of 108 Main Street has been listed as a major priority in the Stawell Community Plan.
Funding of $240,000 towards the project was announced by Deputy Premier and Minister for Regional and Rural Development Peter Ryan during a visit in August.
Other funding for the project is being provided through the Regional Growth Fund's Putting Locals First Program and a $120,000 Council contribution.
The laneway at 108 Main Street will remain closed during the construction of the new building.
The design for the site has been developed to complement the heritage appeal of Stawell's streetscape.
"This project will enhance both the appearance of the streetscape and visitor experience," Mrs Linley said.
"Council is also confident it will encourage new investment in the CBD."