Where the broken asphalt of a vacant used-car lot now lies, residents will begin moving in next year to a 108-unit housing development along University Avenue. The block-length community will bear the name of the neighboring light-rail stop: Hamline Station.

Paul Williams, St. Paul’s former deputy mayor, recalled buying a car at the 1333 W. University Ave. site back when it was still a Midway Chevrolet dealership. As a kid, he bicycled up and down University Avenue. His relatives sold beef ribs at a small eatery nearby.

After years of disinvestment along University Avenue, much of it characterized by car dealerships fleeing the business corridor, he’ll be happy to see new faces moving in along the Green Line. City leaders are banking on the new $957 million light rail line, which began operating in June, to help spur economic growth in the area.

“I think this is going to be a beautiful development,” Williams said. “There’s going to be two buildings, green space and common space in between. (It) connects the neighborhood and does not make it an impermeable space.”

St. Paul Mayor Chris Coleman joined Williams, executive director of Project for Pride in Living, and city council member Russ Stark on Monday to celebrate the groundbreaking for the long-awaited affordable housing project. Coleman called the new light-rail corridor a catalyst for economic development.

Located across from the Midway SuperTarget store at the northeast corner of Hamline and University avenues, the $28 million, two-building undertaking is being looked to as a possible model for “transit-oriented development” along the Green Line.

Officials said the affordable housing complex will fill an entire vacant block with new life and give residents easy access to transit, jobs, shopping and recreation, while also adding a touch of green space to the area. Underground parking will be provided on site, with additional parking in a neighboring back lot.

The four-story Hamline Station West Building will have 57 residential units targeted to low-income households, as well as 13,700 square feet of commercial space. The Hamline Station East Building will include 51 low-income units. A green public plaza will bridge the two sites.

Construction is expected to begin within about a month and take 14 months to fully complete.

“Seeing some of this dirt, and some of this 50-year-old asphalt finally move, is going to be a really exciting thing,” Stark said.

The new apartments will be targeted to residents earning up to 60 percent of area median income, or about $49,750 for a household of four. The buildings will include a mix of single and family units.

About 14 residences have been set aside for tenants who were previously homeless or disabled and may need greater help from social services, which will be provided on site.

Frederick Melo can be reached at 651-228-2172.

Follow him at twitter.com/FrederickMelo.