The city of Regina is finalizing a deal to buy part of CP's rail yards for $7.5 million.

The land is a key part of the city's revitalization plan.

Originally the city hoped to build a stadium at the site.

Now the rail property will be developed into business and residential space. The stadium will be built further west, on land the city owns and provides to the local exhibition association.

In addition to the purchase price for the CP land, the city will spend another $2.1 million for environmental work, and to deal with a railway bridge that is no longer needed.

CP will be able to lease the land until July 2014.

The land purchase will be discussed at a committee of city council on Wednesday.