At first glance, downtown York's Northwest Triangle doesn't look like the largest community- and economic-development project in the city's history.

"All you really see is a lot of empty space," said Matthew Jackson, the city's economicdevelopment director and redevelopment-authority coordinator. But a closer look shows demo Ii tionis nearly complete, and commercial construction is under way, he said.

The empty space, bordered by North George Street, West Philadelphia Street and the Codorus Creek, is slated to become a mixed-use neighborhood. With a cost estimated at more than $53 million, the completed project will offer more than 130,000 square feet of new and rehabilitated space for offices, entertainment, restaurants, retail and the addition of up to 125 townho uses and condominiums.

Approved for redevelopment by the York City Planning Commission more than three years ago, most up to this point has been behind the scenes.

"The York Redevelopment Authority is completing land acquisition, infrastructure planning is ongoing, subdivision and land-development approvals for the commercial land are in process, and residential planning continues," Robert A. Kins- ley wrote in an e-mail. Kinsley is managing ? artner of Kinsley Equities III, one of the developers of the project.

Under the Northwest Triangle plan, Kinsley is handling new construction and renovations to several historic buildings, including the Smyser-Royer building at 235 N. Beaver St., the Keystone Colorworks building at 109 W. Gay Ave. and the Thomas Somerville Co. building at 302 N. George St. Once the buildings are completed, Kinsley plans to use them for commercial and retail space.

"For the commercial space, we are seeking professional- office use that would enhance the viability of the downtown core of restaurants and retail development," Kinsley wrote. "We do not envision retail use that would compete with existing retail."

Kinsley said he has talked with interested tenants and is optimistic about filling the space. The developer has attracted and expanded commercial tenants in other downtown York buildings, including the Valencia Ballro om and the former Edward Fox Baking Co. building in the historic district.

While things are moving along on the commercial side, residential development has hit a sp eed bump. Litigation is still under way for the city to acquire three acres belonging to Ohio Blenders Inc., the last piece of land needed to begin residential construction, Jackson said.

"Projects of this magnitude typically have a property hold out, but we expect disposition of that case in the near future," Jackson said. "After we acquire the property we will have to remediate the soil."

That could mean a delay for Enterprise Homes Inc., the Baltimorebased developer constructing the projected townhomes and condominiums. Another unknown is whether the new neighborhood will attract residents. Chickie Grayson, president and chief executive officer of Enterprise Homes, said she has no worries.

"We feel a sense of excitement is growing about downtown York," Grayson wrote in an e-mail. Amenities like the Heritage Rail Trail County Park and Sovereign Bank Stadium will contribute to a desire to live where the action is, to take advantage of the convenience of downtown living, she said.

"We do feel that the extension of the Rail Trail along the Codorus, which will abut new residences, is absolutely critical to attracting new residents," Grayson wrote. "We are in active discussion with the city county and Rail Trail Authority about moving ahead with planning and fundraising for that very important component of the entire project."

More residents with disposable income means a significant impact on the area's existing businesses, including restaurants, farmers' markets and other retailers, Jackson said.

"Projects like this need to take place to increase downtown business and activity," said Andrea Linebaugh, co-owner of The Studio and Art Bar at 29 N. Beaver St. With the Northwest Triangle estimated to bring 250 newresidents to the downtown, Linebaugh hopes to extend her business hours and hire an employee or two. The length of the project doesn't bother her.

"I think it's going to be a good thing for everyone," she said. "And all good things take time."