BOZEMAN - New development is underway on East Main Street in Bozeman.
The Blue Sky Motel caught fire back in February, but a new structure was already planned before the fire happened.
For years, the Blue Sky Motel was located on East Main Street near Lindley Park.
Now, new residential and commercial spaces are taking its place.
"A three story building will be put there. The main floor will consist of 5 commercial units, which can be dividable anyway you want," said Shaun Shahan, Re/Max Realty Group. "There are also two floors of high end luxury residential units."
The Park Place's residential units will also have attached garages and a security system.
Shahan said people want to live in an area that is close to their every day necessities.
"Our market research shows that people want convenience. They want to be able to walk to stores, shopping and healthcare.," said Shahan. "We did a walk ability study that showed 85 out of 100 wanted to walk places."
Bozeman Economic Developer, Brit Fontenot said the city is working on expanding the downtown area and park place adds to the city's plans to expand East Main Street.
"A development like this shows people living there, people using the services, people are populating the Main Street area,," said Fontenot. "Its adds life, vibrancy and real attractive feature to the downtown. It's not just a place where people shop, but a place where people live."
Fontenot said the East Main Street exit is typically the first impression visitors get of Bozeman.
"The Main Street exit is very important for the first impression of our community,' said Fontenot.
The Park Place is expected to complete construction by the end of this year.
Town Pump is considering demolishing their Exxon gas station on East Main Street and building a new one in its place.