New Albany officials joined representatives from Indianapolis-based Flaherty & Collins Properties to break ground Wednesday on The Breakwater. The $26.5 million mixed-use development will feature luxury apartments and street-front retail space.

Construction on The Breakwater is expected to last 18 months with the first apartment units available in spring 2017. The project is expected to create nearly 100 jobs and have an economic impact of $30 million.

In an interview with Inside INdiana Business, New Albany Mayor Jeff Gahan says he's thrilled about the new development. "I don't think there's a city in the country that wouldn't want a development like this. It's certainly a plus for the region as well."

Mayor Gahan says the city has also put in a lot of work in redeveloping Main Street in New Albany. He says the city hopes to make an announcement in the future regarding a building that has been vacant for 20 years that will compliment the work that has been done on Main Street.