Construction begins of new offices for E.on31 January 2011
Nottingham City council leader Jon Collins has taken a swing at the former Treasury building on Burton Street to start its demolition.
The site has been sold to Miller Birch which is to build a 105,000 sq ft office development for energy giant E.on, costing £30m.
The letting on a 15-year lease was the largest pre-let outside London last year.
The nine-storey building due for completion in June next year will allow E.on to consolidate its city centre call centres, administration and management functions on one site.
The city council left the Guildhall last year, moving to Loxley House, which freed up the site for redevelopment.
"This development is an important milestone in the commercial redevelopment of the city and will provide a big boost to Nottingham's economy," said Mr Collins. He said the move helped retain hundreds of jobs in the city.
Mark Bielby, development director of Miller Birch, said the redevelopment was the first step to a new business quarter.
E.on property manager Mark Maisey said the offices would be the most energy-efficient in their ownership, using the district heating scheme, photovoltaics and latest systems.