Councillors have hailed "desperately needed" regeneration work in New Addington being given the green light by the High Court.
A supermarket and a new leisure centre were be among long-delayed development given the go-ahead by judges who last week dismissed pleas for the village green status of Central Parade to be widened.
The village green application - lodged by resident Michael Fuller in 2011 but rejected by Croydon Council in March - which would have meant a paved area, including three car parks, could not be built on.
Mr Fuller, 74, of Overbury Crescent, appealed the decision, but High Court judges turned down his request for a judicial review.
New Addington councillor Tony Pearson said he was "very pleased" work could now proceed.
He added: "This regeneration has been on the cards for a long time now and has frustratingly been held up by a small number of people. I'm glad the High Court has seen sense to come down on the side of the council so we can get on with giving the majority what they want, which is a supermarket, a new leisure centre and improved community facilities."
Central Parade
Tesco, Asda and Morrison's have all expressed interest in opening a store in Central Parade.
Among other improvements planned are better access to shops, resurfaced footpaths and roads, and parking spaces.
Coun Simon Hall, for Fieldway, predicted the makeover would help bring jobs and visitors to the local area.
He said: "We desperately need regeneration and it was tragedy that it didn't happen some years ago.
"In terms of local employment and the strength of local businesses, this will be a real boost. I think it will really help to change the image and feel of the area."
But he warned amendments would need to be made to an existing village green order already affecting some parts of Central Parade before work could begin.
Croydon Council will appoint a design team to consult the community later this year before drawing up proposals for the upgrades.
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