HOLLADAY — The Holladay Village Center redevelopment project received a green light Tuesday — an approval Mayor Dennis Webb called "one of the most single important votes in the city."

"It was a very, very happy day for the city," Webb said. "It's really a statement about building a community. It really is about saving the relationships of small merchants and the city center that has been such a part of Holladay."

The heart of the center is the tangled intersection where three major streets — Murray-Holladay Road, 2300 East and Holladay Boulevard — converge. The RDA, approved by Holladay's Taxing Entity Committee, will use $23.5 million in tax increments to make improvements to the area.

Local governments use RDAs as a tool to cure blighted areas by diverting property taxes into city rejuvenation projects. The 48-acre Holladay Village Center will benefit from the tax increment for the next 15 years.

Developing a walkable community with a historic quality is a leading priority for the city. Plans include a mixed-use development with retail, office and residential space. And, in an unusual move, the city has pledged the retail space will not include national chains or big-box stores — only local businesses.

"I don't think there will be anything quite like it in all of Salt Lake County or, frankly, in the state of Utah," Webb said.

That's good news for local business owners like Gordon and Connie Hanks, owners of the Holladay Pharmacy. The husband-and-wife team spent $1.3 million on expansion and renovation of their Village Center pharmacy and, Gordon Hanks said, "We're staying right here."

"This pharmacy has been here 70 years," he said. "We're excited for a new mix of retailers to make it a new, vibrant city. . . . Upscale, a little bit funky — that's what Holladay is."

The city will be returning to its roots with the mixed-use development. Holladay was the second permanent settlement in the Salt Lake Valley when pioneers settled the state in 1847. The village center became a destination for settlers throughout the area — a center that could again provide services in a social atmosphere.

"We're very thrilled that we've finally gotten to this point. We've got a great plan in place. We just want to forge ahead and keep it going," Hanks said. "We'll be here for hopefully another 70 years."

Of the $23.5 million, $17.6 million will be used for infrastructure upgrades such as streets, sidewalks, power lines and traffic-calming devices. Business owners have been asking for such improvements for years. A $2 million grant from a federal highway funding bill also will help improve the infrastructure.