Work has begun on building a business centre at South Shields' Harton Staithes site following agreement between South Tyneside Borough Council and British Telecom on occupation of the 4,000m² building.
The Council acquired the site from One North East which owns the remainder of Harton Staithes and the centre is being built by Miller Construction for completion next summer.
"This is a landmark day," said Council leader Iain Malcolm.
"The construction of this business centre is the first piece in the jigsaw of our ambitious masterplan for the South Shields riverside. The fact that BT, a blue-chip company with a global brand, is basing its Local Government operations in this fantastic South Tyneside location is a massive vote of confidence for the Borough."
He said he hoped BT's presence would act as a catalyst for further development.
