An artist's sketch of a redeveloped George Street suggests how city council would like to attract a broader demographic to the entertainment district. (CBC)

While the cost to overhaul the key entertainment district in St. John's will be expensive, the head of the George Street Association says the renovations will pay off in the long run.

On Monday, St. John's city council voted to proceed with a final study on the transformation of George Street, a party spot in Newfoundland and Labrador that's popular nationwide. Council said the $17 million renovation project can't be realized without private funding and support from the provincial government.

The proposed price tag came as a surprise to many, including Seamus O'Keefe, the executive director of the George Street Association. However, O'Keefe told CBC News that people shouldn't be scared off by the proposed multimillion dollar bill.

"It is a staggering amount of money, but there is significant work that needs to be constructed on this street in particular and I think, as I said, the reward will be over time as an iconic destination for tourists and citizens alike in St. John's," said O'Keefe.

O'Keefe said the association, a voluntary committee that unites bar and club owners on the street, had received other estimates from the city in the past. Two years ago, the price tag hovered at around $3.5 million; it later ballooned to $10 million. O'Keefe said "the biggest little street in north America" is in dire need of repairs.

"Right now there hasn't been a significant overhaul on the street in well over 20 years. The infrastructure is crumbling, there's broken cement, the pavement needs to be repaved and it just needs a general aesthetic clean up in general," said O'Keefe.

In recent years, St. John's city council has been intent on sprucing up George Street, trying to transform it from a late night hot-spot into a daytime family-friendly attraction. O'Keefe said the renovation will create opportunities for investors keen on reshaping the street.

"I think what we need to do is look at the hard numbers and what stakeholders we can bring, whether they're Newfoundland Power, whether they're the cable company. What we can do to alleviate some of those financial burdens and strains that exist because of this plan," O'Keefe said.

"And if the plan needs to be reworked or reshaped, then we would look at that to make sure it's done in the best, most efficient and cost effective way possible."