A proposal that won preliminary approvals in 2009 is moving along with demolition of the former Romond's Garage to make way for four stores and 20 apartments.
The building has now been largely broken down to piles of girders and timber.
A five-story building will replace the former garage.
Developer Frank Cretella expects to pair the project, known as Arts Loft I LLC, with another development bordering on Gavett Place to create an entertainment center.
The new building will occupy a block north of the main train station and is part of Cretella's downtown plan.