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Plaza Saltillo officially broke ground in East Austin on Wednesday and construction is set to begin soon on the 11-acre development.
The Plaza Saltillo District will transform an abandoned site along Highway 35, between east fourth and fifth streets, into a community of apartments, offices, shops and open space.
Capital Metro is partnering with the developers to construct a metro rail station there.
The plan is to make the area a transit-oriented development and extend the Lance Armstrong Bikeway to connect the space to downtown.
Developers estimate the project will take about two and a half years to complete.