Winchester city council has chosen Thornfield Properties to redevelop the Broadway and Friarsgate area of the city.
Cabinet members were told that Thornfield had been the only company to come forward with a serious interest in the project.
The scheme will comprise shops, bus station, housing, car parking and leisure facilities.
The development will take a number of years to complete. A revised draft planning brief will be considered by councillors in the New Year and stimulate public discussion.
Labour councillor, Patrick Davies, condemned the ruling Lib-Dems for discussing the future of the site behind closed doors.
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