DEMOLITION work to clear the old Tesco building from Forge Island is under way.
Rotherham Borough Council bought the land in February thanks to a £1.5 million loan from Sheffield City Region.
The site has been named by the council as its number one priority for the long-term regeneration of the town centre.
A cinema, theatre, restaurants and bars have been among features suggested for the 4.2 acre site.
RMBC has also acquired the Riverside Precinct shops and bought the former magistrates’ court for £1 to create a bigger site more appealing to developers.
More details are expected to be given when the town centre masterplan is published later this month.
The extra space gained from demolishing the former supermarket, which moved across town in 2014, will be used for car parking in the short term.