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The council has put in a bid for government funding to help rejuvenate high streets.
Medway was one of 51 local authorities in the country shortlisted for the government’s Future High Streets Fund.
This means it could be in with the chance of obtaining £14 million out of a total of £657 million to invest in Chatham High Street.
The council now has to draw up detailed proposals based on its initial plans.
Leader of Medway Council, Cllr Alan Jarrett (Con), said: “We are delighted that we are just one of a few councils across the country which has successfully made it through to the next phase of bidding.
“Chatham already has a lot to offer and we are committed to providing Medway residents and businesses with more opportunities.
“If successful, this funding will further support Chatham’s ongoing transformation works and make the area an even better place to live, work, learn and visit.
“It will also help us work towards our ambition of Chatham becoming Medway’s waterfront university city centre by 2035.
“It is a very exciting time for Chatham; we have invested heavily in the area, including acquiring the Pentagon shopping centre, and we remain committed to continuing to help our high streets thrive.”