Three more buildings - including a 10-story tower - will be rising.

The $28 million project, announced Wednesday afternoon, will bring 165,000 square feet of residential, retail and office space near the intersection of Center Street and University Avenue.

The development largely will replace parking lots, though it also will force out Allen's Photography and a temporary plaza south of the Wells Fargo building.

Provo's redevelopment director, Paul Glauser, said the project will fill gaps in the historic area and enrich one of Utah's most attractive and authentic downtowns.

"The new Wells Fargo building has gone a long ways toward proving there is a market for class A space downtown, and we're excited to have another building there to offer," Glauser said. "We're excited we can get new buildings in with new people to shop, work and live downtown while maintaining that authentic sense of place we have."

The tower will offer retail and office space with the option of adding residential units on the upper two floors. The smaller, four-story buildings will include retail and residential space.

Construction is expected to start in early 2008 and end in late 2009. But Glauser said the developer could begin restoring the neighboring Knight Block and Gates Snow buildings as early as this summer.

Cooper Roberts Simonsen Associates is designing the development. Among the Salt Lake City firm's other projects are the Utah State Archives Building, Fort Douglas Museum and transit centers in Park City and Ogden.

Brad Sears, manager with Provo-based REMS Development LLC, said the office and retail space would span about 110,000 square feet. He added that a major national commercial company has expressed interest in leasing 30 percent of the tower's office space.

As for the remaining space, Sears said his company would begin negotiating and signing agreements now that the project is a done deal. He has been working toward approvals with the city for 13 months.

The residential space will total about 30,000 square feet with an opportunity to expand into the tower as well.

Sears estimated about 40 studios, one-bedroom and two-bedroom condos would be available for sale or lease. He did not put a price estimate on the units.

"They'll be nicely finished and furnished," he said. "There's a market for those, whether it's downtown employees or working professionals who want nice upscale housing in an upscale area."

Sears said the units would come with amenities available to residents and employees, including racquetball courts, two courtyards, a weight room, a break area and a Jacuzzi.

Provo's Redevelopment Agency is selling the developer property for the project and is leasing out surplus parking space in the Wells Fargo lot. It also will give the developer 95 percent of the increased property taxes that the project will generate through 2015.

Glauser said the RDA will make two payments to the developer - totaling $700,000 - during construction. REMS development will repay that amount, plus 25 percent interest, from the net income of the project. It also will hand over 7 percent of its yearly net income to the city.

"We're excited," Sears said. "We look forward to getting under way."

sgehrke@sltrib.com