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Herne Bay’s Christmas tree could move from Mortimer Street to a new public square being built on Wimereux Gardens.
Plans to pave over the area to create a public space for markets and concerts were revealed in December.
Now council officials have started work on the site, which is expected to be ready to open in August.
Herne Bay Town Partners Gideon Scott said: “There is talk of moving the town’s Christmas tree from its usual position in Mortimer Street to the new square.
“If that happens, the light switch-on event would move, too, and I think it would be a real focal point.
“Decisions have not yet been made with all the relevant groups involved, but we are putting in place a tree slot so it gives us the option.”
The work follows the recent resurfacing and relining of William Street car park.
It is also being carried out alongside enhancements to Beach Street and Lower William Street, both of which will be repaired and resurfaced.
Mr Scott added: “Sadly the start date of the works on the square has been delayed so it looks like it could open about mid-August.
“That means we will only have advantage of the facility for the end of the summer.
“We would like to organise some kind of function or event to officially open it, but that will be dependent on when it is finished.”
The project, which is being funded by developers of the Altira business park, has been awarded to Amey Construction.
The council’s transport and environment Manager, Richard Moore, said: “We are pleased to be moving on to the next phase of this project – the creation of the new town square.
“This is something there has been a lot of support for in Herne Bay, and we hope it will provide a focal point for the community to come together and enjoy events and activities.”