A ceremony, attended by the Vice-Chair of the Council and the Leader of the Council, marked the beginning of construction work to reinvigorate the site in Bognor Regis.
Work is due to start next week once the site has been fully set up and checks for underground services completed.
Cllr Shaun Gunner, Leader of the Council, said: "We are creating a vibrant vision for Place St Maur – a new plaza with greenery and seating that will continue to make Bognor Regis the go-to destination of the next generation. I'm delighted to have been on site to witness this significant milestone as the construction phase gets underway.
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"I will be watching the work progress and I'm excited to see the finished result, especially once the revived Place St Maur is hosting events and buzzing with people.
"The fact that we have been given the Coast to Capital funding is a sign of the faith they put in our town and we fully intend to fulfil our commitment to enhance Bognor Regis with further renovation in the near future."
Other attendees included Vice-Chair of both the Council and the Environment and Neighbourhood Services Committee, Cllr Samantha-Jayne Staniforth, Chair of the Environment and Neighbourhood Services Committee, Cllr David Edwards and ward members.
Experienced landscape company, Ground Control Ltd, won the tender to take on the project earlier this year, after the council was awarded a £1.2 million Coast to Capital grant towards a total capital budget of £1.5 million.
They will work with specialists The Fountain Workshop on the water feature elements of the scheme that also includes an area to host events, coastal planting, new seating and areas for outdoor café tables and chairs.
