The Co-Op and its developer file plans to remove the last remaining buildings on the Bridge site.
Leale's Yard has lain derelict for years and the Co-Op is keen to progress its development.
It plans to build more than 300 homes, with parking and a new supermarket.
Some old industrial buildings remain, and the Co-Op and development partner Omnibus have filed for permission with Planning to take these down to get Leale's Yard ready for development.
The Co-Op's CEO, Mark Cox, says they plan to demolish and recycle sensitively:
“Within the application, we have set-out the case to progress the demolitions, and how the 'arisings' will be disposed of to meet environmental and sustainable standards. We also explain how the works will be completed when the demolitions are approved. We hope that this information is of interest to people, and we look forward to working with Omnibus and the States of Guernsey to secure the permissions sought."
He says care is being taken to safeguard and move the wildlife that's made the place home:
"We're managing the wildlife very well. We've built new housing for the slow worm population and they'll be transferred to Bordeaux in the future."
The States of Guernsey recently expressed interest in putting money into the project as part of its aim to build more, affordable and key worker homes.