Work is getting underway on the Marsh Farm redevelopment scheme this month.
Over 100 new council homes, an improved road layout and a revamped retail centre are all part of the long-awaited project.
The initial phase of the work involves making improvements to Northwell Drive by removing the large roundabout outside the school and creating a two-way single carriageway.
There will be a new mini roundabout built to service Futures House and the proposed new retail units which will be built on the site of the former Purway Close flats.
These works are expected to continue until the end of March and speed and parking restrictions along Northwell Drive in front of the school and leisure centre will follow in due course.
Pam Garraway, Corporate Director for Housing and Community Living, said: “After almost two years of planning we are excited that this important development in the Marsh Farm area is underway.
“One of the most significant aspects of this project has been that residents have been part of the project working group and have helped shape how it is going to look. We are also using local labour where possible.
“There is likely to be some disruptions while the work is being carried out so we will be keeping residents informed throughout the project.”
Luton Borough Council’s own architects are currently doing the detailed design work for the second and third phases of the scheme.
The work on the retail centre will commence later this year once the design work is finished and contracts are in place.
The final phase of the development will be when 111 new council homes are built on the estate.
Soil investigations are currently taking place where boreholes are being dug in the area to determine the type of construction and foundations that are needed for the development.