The city has approved the 26-acre, mixed-use Fireclay Villages, which Murray leaders hope will spur more construction near a TRAX stop on 4400 South and 100 West.
The Fireclay Redevelopment Area is a 97-acre project created near the light-rail station.
Through an RDA, developers can receive part of the property tax generated through the increase in land value from improvements.
The redevelopment area was created in 2005 and only one new building graces the former smelting site -- a lag many credit to the slowed economy.
"It's definitely impacted it," said Murray's Community and Economic Development Director Tim Tingey. "But the fortunate thing for us is we've got very good developers that are trying to adjust to these market trends."
The Fireclay Villages would be built in three phases during the next five years and include 677 housing units and more than 94,000 square feet of office and retail space.
Apartments would later be joined by buildings with offices and shops on the bottom floors and condominiums above. That's a change from earlier plans to include more condos and townhomes, said developer Colin Wright with the Centerville-based Fireclay Investment Partners.
"Affordability is an issue; it's hard to get a loan," said Wright of the shift.
The pace of development at Fireclay Villages depends on the economy, but Murray Mayor Dan Snarr said "we hope that they'll be the stimulus so that people can catch the vision" and highlighted a $2 million bridge that will be built over 4500 South.
The project is expected to cost $130 million, Wright said, and construction should begin this spring. Fireclay Villages will join the 22-acre Birkhill at Fireclay development.
That project began construction in November 2007; so far, one four-story building exists with space for office and shops on the bottom floor and condos on top floors.
A few renters are in those condos, which were initially built for buyers, said Michael Brodsky, of the Birkhill-developer Hamlet Homes.
The site's overall plan has changed, Brodsky said, to include what should be more marketable buildings.
The proposed live-work units would have a small store in the corner. The rest of the building would be three-story townhomes with the bottom floor as either home offices with street access or extra living rooms.
Brodsky said the two developments will help each other.
"The whole concept of this [district] is the more diversity we get and the more activity we get in there, the more it will help everybody," Brodsky said.