The former Poundstretcher building has been levelled to make way for the landmark building which will host The Great Tapestry of Scotland alongside a range of other elements.
In addition, the scheme will see the former Post Office being brought back into use. Construction work is scheduled to begin in October.
As the brainchild of renowned writer Alexander McCall Smith, historian Alistair Moffat and artist Andrew Crummy, The Great Tapestry of Scotland a unique community arts project to stitch the entire story of Scotland.
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Cllr Mark Rowley said: "This is a hugely exciting time for Galashiels and the Borders, with significant progress now being made on the Great Tapestry of Scotland complex, which will kickstart the delivery of the Galashiels Masterplan.
"A partnership approach is being used to take forward the project, highlighted by the fact that the proposed streetscape improvements have all been identified as priorities by a range of community and business groups.
"The removal of the old Poundstretcher building is a significant milestone, and we will continue to work closely with our partners including community, education, arts and tourism organisations to ensure this exciting project - as the first stage of the Masterplan - helps to re-shape the town and encourage investment in Galashiels and the wider Borders economy."
The Great Tapestry of Scotland is expected to open in spring 2020.
(LM/MH)
