Officials say a historic building in downtown Newark is being renovated in an effort to expand the city.

They say the old New Jersey Bell building at 540 Broad St. opened in 1929 and was known for its majestic lobby and brick and sandstone exterior.

"This is a project that is going to have historic ramifications in our city," says Mayor Ras J. Baraka. "People get to drive by and not only have discussions about what used to be here, but they're going to have discussions about what's happening here now.  It gives them the encouragement and faith to move into the city and help the city grow."

The building will house apartments, affordable housing, retail and office space when finished.

The official groundbreaking took place Monday morning.