Plans have been lodged with the ACT government for the redevelopment of the Dickson car park into two supermarkets and 155 residential units.
ACT Treasurer Andrew Barr announced in March this year that Coles and Aldi supermarkets, apartments, specialty retail stores and office space would be constructed at the site.
The new Dickson Group Centre, which is a joint venture between Coles Group Property Developments and the Doma Group, will be built on the existing car park on the corner of Antill and Badham streets.
Pending ACT Planning and Land Authority approval, construction of the $56 million project is expected to begin in mid-2015.
Traders in the area had previously expressed concerns about the development, saying the lack of car parks during construction could sink local businesses.
The plans for a temporary 100-space car park next to the Dickson Pool to alleviate this concern also raised the ire of residents, as 27 trees would be cut down to facilitate it.
In a statement Coles confirmed that in response to community feedback the Land Development Agency had identified an alternative location closer to the Dickson retail centre.
Final negotiations with Coles and the current landowner of the site are under way.
Coles state general manager Kirstie Hepburn said the development would generate hundreds of local jobs and spark further economic activity in the inner north of Canberra.
She said about 250 jobs would be created during construction and on completion a further 200 retail jobs would follow.
Doma Group general manager of development Gavin Edgar said the project would capitalise on the location and amenity of Dickson to deliver apartments for buyers keen to live close to the city, on the proposed light rail route.
According to planning documents the 155 apartments will consist of 70 one-bed, 65 one-bed plus study, five two-bed and 15 three-bed, in a variety of floor plans.
Colliers International director residential project marketing Derek Whitcombe said the development, which has been named Lotus, is already attracting buyers.
He said it followed other precinct projects that had been popular in the territory including Acton, Kingston Village and the Kingston Foreshore.
"These areas become destinations for apartment buyers because of the level of amenity that's on offer within the precincts," Mr Whitcombe said.
He said while the project had only recently come onto the market it was already popular with investors and first home buyers.
The Cox Architecture-designed centre will include a shared zone incorporating retail and alfresco café dining, and more than 700 car parking spaces.
Public notification on the development application closes January 27.