Clutha District Council yesterday awarded the main construction contract for the 8ha former sawmill site Rosebank Industrial Park to SouthRoads Ltd.
SouthRoads was successful with a tender of $891,975.79, one of two received by the council.
Work at the site on the outskirts of Balclutha started this week, and the council was "delighted" to see progress on the $2.8million, "transformational" project, Mr Cadogan said.
"It's exciting to realise that this time next year we'll be seeing some flash new developments along the southern entrance to Balclutha, allowing local businesses to flex their entrepreneurial muscles. I hope this is the catalyst to break what's been a generation of stagnation locally."
Although the cost of the development was likely to exceed gains from the sale of sections and the project had been a "leap of faith" on the part of the council, it was a risk that would pay off for decades to come, he said.
"Elected members felt the economic and community benefits of the industrial park far outweighed the monetary loss, which will be covered by the sale of surplus council property and not by rates."
Already operating from one of the pre-existing Rosebank sawmill sheds is aluminium fabricator Agri Engineering, owned by Balclutha man Jason Payne.
Due to business expansion, Mr Payne said he now hoped to build a new shed on one of the planned sections abutting State Highway 1.
"Balclutha has needed somewhere like this for a while. We're right on the highway, got plenty of space, and more bang for our buck generally, which we couldn't find in town when we looked. It's worked out well for us and I'm pleased to see it going ahead."
Clutha-Southland MP Hamish Walker also praised the "proactive, growth-promoting" development.
"The council needs a pat on the back for its work. This particular site is key for future developments in Balclutha, and the soil turning today marks an exciting future for the town."
Mr Cadogan said work at the site would be carried out in two stages. Underground work including water, sewerage and power was due to be completed in July, and above-ground work would follow.
The park would comprise 11 freehold lots, with the major, 3.74ha lot already sold, and "strong commitments" made for six of the remaining 10.
Mr Cadogan invited people to offer feedback on the project via the long-term plan consultation process, and said he hoped the public would see its potential.
"New jobs and new rateable units in tandem with contributing to the vibrancy and future prosperity of our district, are not the only bonuses. We are excited that this project has contributed to the shake-up of commercial development and is the flagship that redefines our district's image. Welcome to progress."
