Construction started Wednesday $74 million project at the Shelter Cove Town Centre.
The plan is a joint venture between Kroger Real Estate and Blanchard & Calhoun Commercial and be built in three phases.
Plans call for a new Kroger supermarket that will include a Starbucks kiosk and will be 87,588 square feet and will be the largest grocery store on Hilton Head Island.
Phase one involves redeveloping the existing shopping mall into an upscale shopping center aimed at walking with 290,000 square feet of retail and restaurant space.
Phase two is slated to incorporate a 5-acre park that will connect to the existing 12-mile trail system on Hilton Head Island. Phase three will include 210 waterfront apartments.
Shelter Cove Towne Centre is projected to create more than 450 jobs and generate $5.1 million in annual sales tax revenue, according to a news release.
Zoning for the center was approved by the Hilton Head Island Town Council in December 2012.
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