The Provo Redevelopment Agency owns four pieces of land on the block that will be transferred to the developers.

One lot is where the historic Paramount Theater once stood. The city has an option to purchase the rest of the land where Allen's Camera stands. The option will pass to the developers and be exercised this summer.

The developers own three parcels — the Knight Block, the Gates Snow building and the parcel between them. The project will cover "one acre of prime downtown real estate," Sears said.

The redevelopment agency sought developers about a year ago. Three responded and Provo chose between two projects it really liked, RDA director Glauser said.

The RDA provided two major incentives to draw interest.

First, it will return 95 percent of the tax increment generated by the new project to the developers through 2015.

The RDA also will provide $700,000 in cash. The developers will pay back that money with interest for a total of $875,000, allowing the RDA to share in the project's financial success, the first time such a mechanism has been used by the city.

How fast the project proceeds will depend on market interest. Sears said the developers have a goal to have pre-lease commitments for 60 percent of the space by the end of the year, which would allow construction to begin early in 2008.

Sears said the center of the block can be used for a construction staging area, so no streets will need to be closed the way 100 North was when the Wells Fargo project was under way.

The day left Billings smiling and looking forward to the expected Zions Bank press conference.

"We'll have another announcement in 45-60 days," he said.

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E-mail: twalch@desnews.com