Fit out work has started on a 15,000 sq ft warehouse property in Preston; transforming it into an indoor skate park and youth centre.
The premises, located on School Street, just off Bow Lane, can be accessed just off Ringway and is due to open early in 2011.
A café, indoor sports shop, and facilities for local bands are also included in the plans.
The property was previously occupied by graphic designers Format Imagining but has since been let by Herbygreen Properties to Northern Extreme Parks for ten years for an undisclosed sum.
The facility will include a variety of ramps for skateboarders, BMX bikers and in-line skaters. Initial internal demolition work is now complete and building contractors are due on site this week.
Developers behind the park are also hoping to link up with local charities, youth groups and youth workers who may want to use the venue when the park is not running.
Mark Harrison, surveyor at Robert Pinkus & Co, who acted on behalf of the landlord, said: "It has been a long process to finalise the lease but it has been well worth the wait as the centre promises to be a fantastic boost for the city's youth and community. We wish the new tenants every success in their new venture."
Northern Extreme Parks has so far managed to raise £100,000 through grant cash of the £140,000 needed to refurbish the property.