SALT LAKE CITY — Construction began Monday on the new Sugar House Monument Plaza on the corner of 2100 South and Highland Drive.

The plaza and its monument have long been considered the center of the Sugar House Business District.

Once complete, the $2.5 million renovation will feature nearly an acre of public open space, reactivation of the historic monument’s fountain, installation of a new interactive water feature, outdoor dining and public art.

“This plaza will be the place to gather for Sugar House residents and visitors,” said Stan Penfold, Salt Lake City councilman and chairman of the city's redevelopment agency. “It is thoughtfully designed, with flexibility and versatility, and I love how it pays homage to the past while also marking a new beginning for the neighborhood.”

The design calls for an expansion of the plaza, including removal of the dedicated right-turn lane off 2100 South, that will allow visitors to experience a large, central gathering space. The new area will accommodate civic events such as the Fourth of July Arts Festival and the venerable holiday Santa Shack.

Other amenities will include bicycle parking, new trees and landscaping, art elements, pedestrian-friendly lighting, and moveable tables and chairs. The historic marker identifying Parley’s Creek will remain and new Lincoln Highway markers will be installed. The Sugar House Compass will also be moved to the plaza.

Designed by the local design firm CRSA, the project will be built by Allstate Construction and is expected to be complete by the end of November.