Adelaide-based Victoria Square will be redeveloped for $24 million with funding from the council budget.

Victoria Square will be redeveloped with Adelaide City Council funding from its own budget over the next two financial years.

According to the council, $23 million will be included as an investment in the Square, with the remaining $1 million allocated to suitable pedestrian and cyclist improvement initiatives around corners.

The funding will enable a large event space and stage, as well as a tram line and road configuration.

Adelaide City Council CEO Peter Smith said work on the contract documentation and procurement process will begin straight away now that funding has been approved.

“Construction is expected to start early next year and will finish by December next year for use by Tour Down Under in January 2014,” Mr Smith said.

He said the project will need to be delivered in stages, but this initial funding will mean “tangible outcomes” will be seen over the coming two years.

Mayor Stephen Yarwood said the upgrade will generate jobs and create economic benefit to the local area, greater metropolitan Adelaide and South Australia.

Mr Yarwood said council’s investment will help attract additional people to the Square, increase activity and provide support to the tram service and regular, programmed events.

“It will also enable council to collaborate with retailers and community organisations interested in operating from the Square.

“We have listened to community feedback from the Picture Adelaide campaign, Splash Adelaide and the draft Business Plan & Budget and an overall theme is more activities and upgrades to our squares and public spaces,” Mr Yarwood said.