The project was given the green light by Letterkenny Town Council and has planning permission to build on the Donegal Creameries site at Ballyraine, as well as a new roundabout.
The 43,000 sq ft complex is expected to consist of a car park, retail units, restaurant and office space, stretching over three storeys.
The company is now awaiting final grant notification in order to proceed with the development, which is issued by the council.
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HMG architects has been tasked with designing the development, which has the aim of enhancing the entire district.
To support the development Donegal Creameries Plc, the company behind the project, will also be constructing a 50m roundabout at Ballyraine.
It is hoped the new roundabout, which formed part of recommendations set out in an Independent Traffic Impact Assessment and Road Safety Audit, will improve the capacity for future traffic flow.
As part of the development the former milk processing plant will be demolished at the front of the site, although there are 22 planning conditions attached to the project which include relocating the existing entrance.
Some local representatives have highlighted concerns about the development, and insist a new roundabout could bring "traffic chaos" to the area.
Councillor Jim Lynch said: "Anybody travelling on this road every day is totally frustrated with the traffic delays and a development of this scale will only add to the congestion."
(PR/JM)
