The development will feature a 2,000-capacity ground and educational facilities
Work has started on a new football stadium and leisure complex in Scarborough.
The 2,000-capacity ground will be home to Scarborough Athletic Football Club, who currently play in Bridlington.
Chairman Dave Holland said it would allow the club to "return from exile".
The complex will also feature a 25-metre swimming pool, sports hall, squash courts and fitness suites. It is hoped the development will be open for use by the summer of 2017.
Mr Holland said: "I am one of a whole generation of supporters who witnessed the demise of the Scarborough Athletic Football Club ground in 2007 and who have, ever since, held onto the dream of returning back to the town from exile in Bridlington."
"It's a personal dream coming true and I am just trying to work out the number of sleeps until we walk out at Weaponness," he added.
The sale of the former ground in Seamer Road is helping the council fund the leisure village and stadium.
Sport England is also investing £2.2m in the project and supporting the creation of an Olympic legacy pool.
A potted history
The town's previous football ground - the McCain Stadium (pictured above) - was home to Scarborough FC, which was wound up in 2007.
Scarborough FC was formed in 1879 and played in the Football League from 1987 to 1999
The stadium was demolished after the club went out of business
Scarborough Athletic Football Club, who play in the Evo-Stick First Division North, was formed in 2007 but plays at a ground in Bridlington about 17 miles (27 km) away
A time capsule including local sporting memorabilia has been buried at the site
The Mayor of Scarborough, Tom Fox, also helped bury a time capsule to mark the commencement of work.
The capsule, which includes photographs and football programmes will remain buried for 50 years.
Mr Fox said the ceremony marked an important milestone in the creation of a "first class leisure facility" for the town.
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