An ambitious billion-dollar revitalization plan for Montreal's derelict Griffintown quarter is being scaled down in light of the global economic slowdown.

The first phase of Devimco's $1.4-billion project to revamp the industrial neighbourhood is being reviewed and construction work could be delayed, said a spokesperson for the development company.

The budget for Phase 1 has already been cut from $4 million to $2 million.

Delays aren't ideal, but the city will wait if it has to, said Montreal executive member Alan DeSousa.

Griffintown has been the way it is for the last 51 years," he said. "Clearly we would have liked it to have begun as quickly as possible, [because] we believe it's an opportunity for urban renewal."

Devimco representatives are meeting with City of Montreal officials in two weeks to discuss the Griffintown project, which would see a radical overhaul of 12 hectares of street blocks around the Peel basin.

Plans included luxury shops, condominium buildings, social housing, parking lots and commercial space with some measures taken to protect the area's urban heritage.

Griffintown was one of the island's major industrial hubs in the 19th century, with manufacturers, sheet metal and printer workshops flourishing in the area west of Old Montreal.

Griffintown was also home to many of Montreal's Irish immigrants and their descendants. The area started to decline in the early 20th century and was largely emptied after the Lachine Canal was shut down in 1970.

Community leaders have been vocal in concerns about Devimco's project because of its size and scope.