The development plan, similar to Anjung Selera here, will feature food stalls, fruit and vegetable markets as well as fish market and will cost the Government RM680,000.
According to Sepanggar Member of Parliament Datuk Jumat Idris, the site preparation for the project was made last year at a cost of RM100,000.
"This project is one of the joint efforts between City Hall and Sepanggar MP's office to re-organise the illegal hawkers along Jalan Sulaman.
"We hope that with this project, the hawkers can sell their products in a proper, systematic way.
"I was informed that City Hall has taken action against the illegal hawkers in the area but I discussed with City Hall to give them consideration until Anjung Sulaman is completed," he said.
Jumat was speaking at the opening of stalls and a surau at Taman Kemajuan in Kg Likas.
The RM200,000 surau was completed in November 2011 while the stalls costing RM250,000 were completed in March 2012.
Jumat hoped the community in the area will use as best as possible the facilities provided by the Government.
"The purpose to create the public facilities is to give comfort to the people as well as to develop areas, especially in Sepanggar, in line with the government transformation.
"My office is currently suggesting several areas under the Sepanggar constituency to be developed for the people's benefit," Jumat said.
In another development, Jumat said he had approved RM50,000 for the purchase of bicycles to encourage the public every weekend to exercise.
Also present at the event were City Hall Director-General Datuk Yeo Boon Hai and villagers.