A new $2 million state loan will allow Open Square to develop more of the huge Lyman Paper Mill along the canal between Dwight and Lyman Streets.

Open Square Architect John Aubin says, "Right now we have a mix of businesses, professional offices, creative firms like marketing firms, some artists and some activity firms like a ballet school, yoga studio so it's really mix use."

The idea is to create an "urban core" where people can both live and work. 50 business tenants are already here. Next, they want to add retail space, restaurants and artists lofts.

Aubin says, "We're hoping to spur major development in the entire downtown and most people aren't aware of this but Holyoke was designed for over 200,000 people so there is a lot of room to grow."

Not only that it preserves history. Developing sites like this is helping old buildings lead a new productive life instead of being targeted by vandals and arsonists. Which is what happened to the old Parsons Paper mill in June.

Aubin says, "It's really great to utilize these older buildings and also a lot of their features like their natural brick and the natural wood, the tall ceilings and the great views which you really can't get in new construction unless you have a huge budget."

In the fall Open Square says they hope to announce the construction of nearly 80 condos.