The approved Napier Park masterplan includes the construction of 625 new homes, two hotels, offices, industrial space and a foodstore at a site previously occupied by Vauxhall Motors.
The scheme also includes community spaces, including a civic square, communal green space and play areas, as well as more than 2,000 car parking spaces and a pedestrian link to a newly opened entrance to Luton Parkway Station.
The developer said it expects the completed project to create 2,670 jobs in addition to 100 full time jobs during construction.
"The site has great importance in the history of the area and our aim is to shape its future by creating a highly sustainable development," said Augur Group managing director Simon Mann in a statement. "By providing new homes and jobs for the local community, the site will help to drive the economic growth of Luton."
The developer said it expects a Section 106 Agreement with the Council to be signed early this year and for initial works to start on the site later in the year.
