A new plan has finally been unveiled for a stretch of downtown Ste-Catherine Street, left vacant and dilapidated for close to two decades.

The plan is to build a $100-million residential-commercial project that will replace the old Seville Theatre and other abandoned buildings, located between Lambert Closse and Chomedey Streets, near the old Forum.

The multi-tower project will house 450 condo units and half a dozen businesses at street level.

"I think this is going to add a lot more youth, a lot more vigor, a lot more money into the area," says Stephan Bronfman, of Claridge Inc., one of those involved in the project. "Hopefully it will start a project that will continue building and revitalizing down the street."

Local residents and businesses applauded the announcement and were encouraged to see demolition work underway.

"Hopefully, once people see there's going to be a big investment here that they will realize the potential of this area here and they will come and they will put up buildings and restaurants," says Roger Peace, head of the Shaughnessy Village Association. "I think we just needed that kickstart and I think this is a terrific kickstart."

For many, the project promises social as well as financial change for the area.

"It will alleviate a lot of the problems of people coming and drinking and - they sleep in there and drink in there," says local resident Marie Abbott, about the old Seville Theatre.

Montreal Mayor Gerald Tremblay is of the same mind with regards to the deterioration of the area.

"It causes a lot of problems," he says. "Social problems, the environment, a lot of homeless people and as a result of that we're working on all these issues."

The new building project is giving community groups and city officials grounds to look to other improvements for the area, including a promise to revamp Cabot Square, a park known as a hang-out for many homeless people.

The Seville Theatre and neighbouring buildings will be demolished over the next few months.

Reconstruction will begin this the fall, with occupancy ready for the spring of 2012.