CLEVELAND -- Work is under way to convert Cleveland's Euclid Avenue into a state-of-the-art thoroughfare.

The $200 million project is the city's hope for attracting more businesses and homes into the heart of downtown, reported NewsChannel5's Tony Gaskins.

The street has suffered from an exodus of business, economic stagnation and a lack of attention for more than a decade. Now, the rebirth of the Euclid Avenue corridor, from Public Square to University Circle, has begun.

The project is also creating a state-of-the-art transit system to connect those two areas.

"It's basically a transit system, but instead of running on railroad tracks it's actually going to run on the street, So, it'll be a totally upgraded modern transportation system," said public service director Mark Ricchiuto.

The trains will also reduce the travel time between Public Square and University Circle from a half-hour to less than 20 minutes.

When the project is completed in 2007, the street will be much more pedestrian-friendly, reported Gaskins.

"The studies that we have done with the FTA, that they've signed off on, really show that many people will find downtown a more attractive place to be, to live, to shop, with this project completed," said RTA Chief Executive Officer Joseph Calabrese.

Ricchiuto says the project has already created about $400 million in economic development with East Fourth Street, The Statler Apartments and the Old Arcade.

The city expects the project will create 13,000 new jobs and another $700 million in new development -- apartments, condominiums and retail. The city also hopes that the new Euclid Avenue will increase the population base along the street by about 4,000 people.

"It's taking what used to be the crown jewel of the city of Cleveland and returning it to that," said Ricchiuto. "Every city needs a main street, and Euclid Avenue is the heart of the city of Cleveland."

Work has begun to prepare the infrastructure, and by fall the city expects to break ground on the renovation of the corridor.