A 53-bed hotel, restaurant, library and parade of shops will make up a £6.5 million building after plans were given the go-ahead.
The five-storey Bicester Community Building forms the final phase of the Pioneer Square development and will open in the summer of next year.
It has now been given the green light by Cherwell District Council’s planning committee and contractors Morgan Sindall will lay the first bricks on the Franklins Yard car park site in the next couple of months.
The ground floor will be made up of a restaurant and shops as well as district council offices while a new library will be found on the first floor.
Office space will be available on the second floor and the top two floors will be for a Travelodge hotel.
Norman Bolster, lead member for economy and estates, said the approval marks the ‘beginning of a brighter and more prosperous future for the town’.
He said: “This decision will enable the use of this site to be maximised to its full potential for the benefit of Bicester.
“Not only will this scheme bring jobs, boost the economy and provide essential community facilities but the addition of the hotel and restaurants will continue to rejuvenate the town outside of office hours, bringing greater activity and vitality.”