Another $130 million will come from state and federal funds to pay for a new interchange and a six-lane bridge across the Downtown Connector at 17th Street in Midtown. Construction is expected to start by spring.

The entire project will take at least 10 years to complete. The joint undertaking by Atlanta-based Jacoby Development Co. and AIG Global Real Estate Investment Corp. of New York. is one of the most ambitious in the country.

The venture will encompass a mix of 1,000 townhomes, condominiums, apartments and single-family residences; 400,000 sf of office; two retail complexes totaling at least 1.5 million sf; and an undetermined number of hotel rooms.

Among the developers on the Jacoby-AIG team are Realty Development Corp., Beazer Homes and Archie Crenshaw, all of Atlanta.

Early players who dropped out were Hines Interests Inc. of Houston, Post Properties Inc. of Atlanta and Mills Corp. of Arlington, Va.