Hobart City Council has struck a $7 million deal with Myer to open a new store in the CBD.

According to The Hobart Mercury, Hobart City Council has committed $7 million to both the department store and the developer, Emmanuel Kalis, to build a new store in central Hobart after a fire destroyed Myer’s original CBD site around seven years ago.

The figure was released in the council’s annual report, with Myer expected to receive $1.75 million for fitout costs from the council each year for two years.

The funding will be given at each stage of the project, starting with the completion of stage one on Liverpool St. 

Over the following two years Myer will be eligible for a top up worth about $3.5 million from the council if the store fails to meet turnover targets, reports The Hobart Mercury.

The second stage is due to be completed by the end of 2017.