Five wharves are closing to make way for the development
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Working on building a wall between the Medway and Rochester riverside is getting under way after the award of a contract for the initial work.
The progress, announced by South East England Development Agency and Medway Council, follows several set-backs.
At one stage a developer pulled out, and existing businesses on the land threatened a legal challenge to plans.
A contractor will now build a new river wall, clean up and raise the largely derelict area to prevent flooding.
Proposals for the site, which is more than 84 acres, include 2,000 homes, a hotel, school and space for retail and business development.
Planning permission was granted in June and earlier this year the scheme was awarded more than £42m by the Office of the Deputy Prime Minister.
The plans are now with the Government Office for the South East which has yet to give a response.
The contract was awarded to a civil engineering joint venture Edmund Nuttall/Van Oord.