Councillor Steve Bowles, deputy leader of the district council, was speaking after it was confirmed Durkan has been appointed by AVDC as its development partner for the scheme.
The Waterside North development, to be located at the top of the Exchange Street car park, is due to begin in the autumn.
The plans include a brand new building with space for up to five restaurants on the ground floor and around 47 one- and two-bedroom apartments, facing onto a new public square.
AVDC will own the freehold of the site and the commercial space. Restaurant tenants will pay the council rent, which the authority says will be used to help balance its budget and for reinvestment in services.
Under the agreement with its development partner Durkan, AVDC will also receive a share of the income generated from housing sales.
Development of the public square which is to connect the new building with the existing cinema complex will be funded with a grant form SEMLEP (South East Midlands Local Enterprise Partners).
The scheme already has planning approval and a detailed application will be submitted in the spring.
Mr Bowles said: “Waterside North will be the next major landmark in the regeneration of Aylesbury town centre.
“Once these ambitious plans start taking shape on the ground, we’ll really begin to see an exciting new chapter unfold in the story of our county town.
“Town centres are changing, with much more demand for living space and for great places to eat and relax. The homes, shops and restaurants which this development will bring are essential if we are to meet the needs of a growing population and secure a long-term future for Aylesbury as a vibrant, forward-thinking urban centre.”
Fraser Wells, managing director of Durkan said: “Durkan is delighted to be working with Aylesbury Vale District Council and is proud to have become the development partner for this very exciting regeneration project. The development of Waterside North is going to create a dynamic mix of new retail, residential and public space, and we are looking forward to contributing towards this next step for the future of Aylesbury’s town centre.”
Durkan is a construction company and developer, established in 1970, which according to AVDC has extensive experience in major regeneration, housing development and infrastructure projects throughout South East England.