MANHATTAN, Kan. (KSNT) – The city of Manhattan is working on an agreement to bring a $40 million project to Aggieville. “Fuze” would be a five-story, multi-use building at the corner of 12th & Laramie Street.

According to city documents, the building would include retail, office and residential space. It is expected to bring in $1 million annually in property tax income and more than $400,000 in sales tax revenue.

Deputy City Manager Jason Hilgers said they are working on a “pre-development agreement” with developers. They hope to bring it back to the Manhattan City Commission on September 7.

“They’ll work on a project timeline, design and a scope for how they plan to proceed,” Hilgers said. “Those will all be included in the final development agreement, but essentially it’s a partnership.”

The city owns the property, which is currently a parking lot. Hilgers said developers would purchase the property for one dollar under the agreement.

Hilgers said the final development agreement should take six months to complete with construction starting in one year. City documents show the construction is expected to take less than three years.

The project’s developers include the folks behind a number of recent developments in the K-State and Aggieville area, including 12-B Apartments and Bluemont Hotel. Click here to look at the redevelopment plan.