NEW HAVEN, Conn. (AP) A $180 million redevelopment of a former department store began Dec. 1 in what New Haven officials called the largest development project in the city in more than 20 years.

When completed in the fall of 2010, the 700,000-sq.-ft. (65,032 sq m) development at 360 State Street will include 500 apartments, a grocery store, other retail, a parking garage and an early childhood education center.

Despite the downturn in the national economy, city officials said downtown New Haven is experiencing one of its largest development booms with more than $1.5 billion worth of projects in the works.

“What resonates most about this accomplishment is that, despite difficult economic times, New Haven continues to thrive,’’ said Mayor John DeStefano Jr. “This project means good jobs, increased traffic to patronize local businesses and a continued spirit of vitality in our downtown.’’

The project will pump an estimated $400 million into the local and regional economy and create about 1,200 union construction jobs and 492 permanent jobs, officials said. They called it the largest residential building ever built in Connecticut.

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