The city of Auburn will get $250,000 to help redevelop four downtown blocks south of City Hall into an urban village featuring commercial, office and residential uses under a new law enacted this year.

Senate Bill 5045, co-sponsored by Sen. Claudia Kauffman, D-Kent, allows local governments to create “revitalization areas” and use additional tax collections obtained from new development there to pay for sidewalks, utilities, landscaping, pedestrian bridges and the like. In effect, the new law allows growth to pay for growth.

The Auburn project was listed in the bill as one of several demonstration projects. A series of other projects that will receive funding were named this week.

The money will be used in Auburn to rebuild South Division Street with new pavement, sidewalks, crosswalks, trees, pedestrian lighting and storm drain improvements. Improvements to underground water, sewer and power lines also will be made.

Work is scheduled to begin in early 2011.

“This is precisely how this new law is supposed to work,” said Kauffman. “This development will be a great addition to revitalize downtown Auburn. And the best part is these improvements will literally pay for themselves.”