Work has started on a new £2.9m base for Taunton Deane Borough Council (TDBC)'s Direct Labour Organisation (DLO) at the Westpark 26 business park.
Developer Summerfield was commissioned by the council to construct the new facilities, which occupy a 1.93 acre (17,500 sq ft) site, to relocate the existing depot.
The DLO's 160 staff will move from the depot's current base at Priory Way, Taunton, to the new premises by the end of the year. This will free up the existing site for redevelopment.
When complete, the facility will comprise warehouse space, workshops, offices and a mezzanine, as well as a large yard.
Along with the council's development, a terrace of 14 commercial units has recently been built at Westpark 26 with 12 units already snapped up.
Chris Winter, chief executive at Summerfield, said: "Summerfield's vision for Westpark 26 was always that the site would become a hub for enterprise and activity across a variety of sectors.
"The presence of the DLO, along with the new occupiers for Block A and the new hospital, will help to bring this vision to fruition."
Pictured (L-R): Chris Winter, chief executive at Summerfield; Cllr John Williams, council leader at TDBC; Nigel Hounslow, commercial director at Summerfield; Ben Trickey, divisional director at Summerfield; Alex Bickman, site manager at Devon Contractors; Richard Brown, project manager at TDBC's Direct Labour Organisation