The first project's other two buildings will be built on the other side of the Knight Block building, at approximately 35 E. Center. It and the other four-story tower will be primarily residential buildings with shops on the ground floor.

The other building will be built last and a little farther east, at 65 E. Center, between the historic Gates Snow building and Ottavio's restaurant.

The bustling building activity is based in part on the success of the Wells Fargo building and a market analysis completed in January that showed downtown Provo could absorb another eight towers the size of the Wells Fargo Center over the next 10 years.

"We learned there is a demand in downtown for both office and residential," Sears said.

The analysis by Economics Research Associates was presented to the City Council by ERA's Steven Spickard, who said that in revitalizing downtown Provo, the more office space the better, because workers in downtown provide daytime customers downtown.

The residential space provides nighttime life and customers for the downtown.

University Tower and the two smaller buildings will be connected to the Knight Block building. All four will share an elevator and stairwell in the center of the block and will be connected to parking in the Wells Fargo parking garage by a third-story pedestrian bridge.

Business and residential tenants will be able to use a racquetball court, jacuzzi, weight room and TV lounge, Sears said.

The City Council unanimously approved the development agreement on Tuesday night.

The project includes renovation work on the exteriors of the historic Knight Block and Gates Snow buildings by the developers, REMS Development and Terminus Properties.

The design concept for the whole project was created by Cooper Roberts Simonsen Architects, which intends to use its background working with historical structures to blend the new buildings with the old.<

"We want to retain the charm and beauty and elegance that has endeared downtown Provo to so many people over so many years," Simonsen said.

"This is a 'Wow!' because it combines the historic with the new," Council Chairman George Stewart said after seeing the renderings. "They match. They fit in."

The Wells Fargo building cost $16 million and had 110,000 square feet, 65,000 of it for office space.

The building's residences have sold out, but some are being resold or leased. The penthouse is being renovated, in part because a black lip between the sixth and seventh floors obstructed views from the seventh floor.

The three new buildings will combine for 168,000 square feet.