The development would link the Brightleaf Square area and downtown.
The project would include shops, restaurants, offices and more than 150 residential units.
In November, Liggett pulled its rezoning application because of disagreements with the city concerning the proposed parking deck that would go along with the project.
The council authorized the City Manager to reimburse Liggett Group, Inc. for the design of a proposed parking garage for an amount not to exceed $75,000.
Work is also starting on Durham's American Tobacco project.
Capitol Broadcasting, WRAL's parent company is
exercising its option on the property
. Crews are now starting to remove asbestos and lead paint from the old buildings.
The plan is to turn the complex into restaurants, shops, offices and more.
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