(Photo by RED Development)

A rendering of Block 23, a mixed-use project that will include a Fry's store in downtown Phoenix.

A groundbreaking ceremony will take place this morning to mark the start of construction at Block 23 in downtown Phoenix. A Fry’s Food Store will anchor the mixed-use project.

Fry’s will be built at the intersection of First and Jefferson streets. The city-owned land known as “Block 23” dates back to Phoenix’s original town site. It used to be home to a theater and JCPenney store. Most recently, it’s been a parking lot. 

In addition to Fry’s urban grocery concept, the high-rise project will feature about 330 apartments and 200,000 square feet of space for offices, retail, restaurants, and above- and below-grade parking.

Phoenix city leaders approved $18.3 million in incentives to RED Development, which is expected to spend about $160 million on the project. It should open in 2019.