NE Derbyshire District Council will issue notices to the affected properties around Bridge Street and Market Street to clear land for the £22m regeneration scheme.

The redevelopment – which will include improved highway access to the A61 from Bridge Street with the construction of a new highway link – will create around 400 jobs.

Developers GMI Rovinian have already been granted planning permission for a supermarket and retail units with extensive car parking, a new petrol station and residential development land – but the project cannot take place without demolishing the designated properties.

Graham Baxter, council leader, said: "The redevelopment of Clay Cross town centre is a major priority for the council. The council is keen to provide modern shopping facilities for its citizens.

"We also want to enhance and strengthen the local economy of our district and the regeneration of Clay Cross is part of that long term ambition."

Other features of the redevelopment plans include a site for a new pub diner, reclamation of existing spoil tip and contaminated land, a new bus station, a new GP surgery and public toilets.

It is a joint partnership scheme between NE Derbyshire District Council, Derbyshire County Council and GMI Rovinian – who have secured £9m towards the cost from the East Midlands Development Agency.

Properties affected by the compulsory purchase order are entitled to compensation for the loss of their asset and have until February 4 to object.

If no objections are received the council will ask the Secretary of State for confirmation of the CPO to enable work to start as soon as possible.

If there are objections and negotiations fail to reach agreement, a formal planning inquiry to hear the objections could be held – taking up to 18 months to complete.