The £80m facility will bring together leisure centre with an integrated health and social care hub delivered at no cost to local tax payers.
To help fund the scheme it will include large amounts of new employment space, council services, police, an advice centre, voluntary organisations, and community and education services, all located within one building, improving public access, service delivery and efficiency.
Morgan Sindall Construction was chosen as preferred contractor under the regional Pagabo National Framework.
The project will repurpose a 10,000m2, 1960s depot building on the Olding Road site and with the use of renewables, such as solar and battery storage, will meet the ambition of being as far as possible ‘off the grid’.
Finalise designs and costs will go back to the council in early 2023 to ensure it achieves the break-even financial tests for the project.
Cllr John Griffiths, Leader of West Suffolk Council, said: “The Western Way Development is a nationally ground-breaking initiative which will transform the way public services work together.
“This is an exemplar of the One Public Estate ethos while at the same time creating new and better jobs.”
Peter Whitmore, Managing Director for Morgan Sindall Construction’s East region, said: “We’re delighted that West Suffolk Council have entrusted Morgan Sindall Construction with what promises to be a transformative development for Bury St Edmunds and the wider community.”