Developers said on Tuesday the next stage of the project had commenced.

The shopping centre is undergoing a a full refurbishment in the latest works, with upgrades to the site’s amenities.

Once the entire project is complete, the centre will have a new 4300-square-metre Coles store, new car parking and new retail shops.

Woolworths will also have a full-line supermarket, with the site’s total floor space to grow to 5300 square metres.

The project had initially been priced at $31 million, which has since grown to $38 million.

Charter Hall development manager Will Green said the centre would stay open throughout the next construction stage.

“Our vision is to create a superior shopping environment for our customers and on completion of the redevelopment works, Lansell Square will be the only centre within the broader Bendigo region to incorporate both a Coles and Woolworths full-line supermarket,” he said.

The City of Greater Bendigo approved the development in November 2012, and work started 12 months later.

At the time the project was approved, Councillor Rod Campbell said it would be positive for Kangaroo Flat.

“I’m very supportive of this project,” he said. 

“It’s a wonderful thing for the people of Bendigo. 

“This will serve Kangaroo Flat for some time into the future.”

Bendigo Business Council executive officer Patrick Falconer said it showed Bendigo was moving forward.

Bendigo Advertiser readers welcomed news the next stage had commenced.

Leanne Tingley, who said she worked in the centre, said on Facebook she was “excited”.

“It’s a great place to work and going to be even better when finished,” she said.

Sue Wilson said the centre had been looking “tired” for some time while Tonya Chenoweth said she hoped car parking issues would be fixed. 

The upgrades, which will expand the site to 22,611 square metres, are expected to be complete February 2015.