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A key step in building up downtown St. George is underway.

ST. GEORGE — A key step in building up downtown St. George is underway.

The Spectrum reports developers gathered Wednesday with city officials to break ground on a $40 million multi-use project.

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The "City View" project is planned to include a four-story Boutique hotel, two four-story apartment buildings, retail shopping, restaurants and other commercial uses.

PEG Development representative Cameron Gunter says the first phases, one of the apartment buildings and a parking structure, should be open by next fall.

About 110 apartment units would be included in the project, which should help meet a growing demand for apartments in the city.

Gunter says the apartments would be higher-end, with monthly rents likely starting at about $900 and go up to $1,600.

Construction is expected to be completed by the end of 2018.