FORT COLLINS -- Developers of Rooftops on the River, a mixed commercial and residential project on Willow Street north of Old Town, drew city officials and community leaders to a groundbreaking today.

Lagunita Cos., headed by Fort Collins developer Jon Prouty, and Dohn Construction Inc. will build 9,000 square feet of retail and office space topped by six loft units, and 18 townhomes that will wrap around the historic Giddings Machine building that now houses the Bas Bleu Theater Co.

The project will take shape on the site of the original Camp Collins, fronting Willow Street between the newly opened Aztlan Community Center and Bas Bleu. Prouty lauded Fort Collins planning officials for their work in making the project possible.

"This is a complicated infill project, with a lot of detail and a lot of complexity," he said. "They've been wonderful to work with through this process."

The commercial building, lofts and townhomes, designed by Boulder-based Oz Architecture, will be aimed at the middle of the local housing market.

"We conceived Rooftops on the River in response to the increasing need for competitively-priced residential properties well-suited to the recreational and urban lifestyles of those who choose to live and work in the heart of Fort Collins," Prouty said in a statement announcing the project.

Mayor Doug Hutchinson said the development measures up to the city's policy to streamline the planning and permitting process for urban infill projects.

"These kinds of things are really exciting to see in this city," Hutchinson said. "We need projects that fit Fort Collins, and this fits Fort Collins."

Each residence will include a rooftop terrace with options for the addition of a master suite or rooftop den with wet bar option, and choice of designer-inspired interior finishes featuring hardwood floors and energy-efficient construction.

Dohn Construction president Doug Dohn said the project will fill a key role in expanding the cultural district that is now spreading into neighborhoods on Old Town's northern edge.

"In our 15 years as a local builder, we have continually sought out opportunities that carry value-added community impact, and we feel that the Rooftops truly will be a lasting centerpiece of Fort Collins' vibrant downtown district," he said.