TEIGNMOUTH is to receive a massive cash investment and jobs boost following a land deal with supermarket giant Morrisons.
The town is set to see £2.5million spent on revamping the seafront including the Carlton Theatre.
The Carlton site has been identified for many years as ripe for new investment and a new iconic building.
But the £8million scheme suggested a few years ago will have to be scaled down to a fraction of the size.
Councillor leader Cllr Jeremy Christophers said the £2.5million cash would be spent on the project over three years.
He said: "The £10million we have received from Morrisons is a huge asset to the council.
"This supermarket will create also 270 jobs in an area of deprivation and create employment for people who never worked in their life before."
Teignbridge is also forging ahead its vision to develop a small estate at Broadmeadow Industrial Estate which will provide light industrial space and office units. It is hoped it will create 53 jobs.
The vision will help create more employment and training opportunities in Teignmouth, regenerate the estate and provide long-term investment for the area.
The scheme gained cross-party support when it was approved by full council at its meeting in Teignbridge's Forde House headquarters.
Deputy leader Cllr Stuart Barker added: "We looked at the current Carlton building. It was either a case of disposing of it or investing in it and make it into a building fitting for Teignmouth.
"With the business units it will be the biggest single capital programme investment in one area by this council.
"Teignmouth is getting a good deal out of this."
Cllr Sylvia Russell, whose own ward is Teignmouth East and the executive member for tourism, said the revamped Carlton would have to be open to the wider community to make it pay its way.
However, fellow local Teignmouth councillor Terry Falcao expressed concern that the seafront spend over three years may be a ploy by the district council to claw back the cash and invest it somewhere else.
He said: "Teignmouth should be driving growth in Teignbridge. There is a potential to make it a world class resort.
"The Carlton cash is great, and to find out about it was relief more than joy, but even this is uncertain.
"The money is highlighted for development on the seafront including the Carlton. It could include other schemes. With an investment over three years I'm confused as to how we will get the Carlton at all.
"This three-year plan gives the administration time to divert and claw back this money and spend it on other projects."
Outline planning permission for the Broadmeadow employment units was approved as part of the overall development scheme in 2011.
The units will be aimed at business start ups and young people who want to relocate or are in a position to move their business into a purpose-built space.
Teignbridge will manage the units and lease them out at attractive rents to help support and encourage growth.