A still from a City of Regina video shows the multipurpose facility that would be built north of the downtown. (City of Regina)

Regina's proposed $1 billion, inner-city facelift is one step closer to happening — although the specific sources of money are still yet to be revealed.

On Monday, city council unanimously approved a plan for the redevelopment of 21 hectares (53 acres) of land that's now occupied by a Canadian Pacific Railways yard downtown and Mosaic Stadium west of the downtown.

Mayor Pat Fiacco says the plan is to have a new sports and entertainment facility built on the rail yard site by 2016, and for housing, retail and commercial development to go up on the current stadium site.

The plan would accomplish several goals, including providing a roomier new home for the Saskatchewan Roughriders football team. The city also wants to do something to alleviate a chronic housing shortage.

"The redevelopment of these 50 plus acres of land allow us to narrow that gap to take advantage of the housing needs that are out there and of course the office space that is needed," Fiacco said.

Fiacco, who has been a tireless proponent of the redevelopment proposal after an earlier plan spearheaded by the provincial government went by the wayside, said private investors will pay for the majority of the project.

"Seventy-five per cent will be funded by the private sector, 25 per cent by the public sector," Fiacco said. "That ratio is no different than any other development we have in the city."

The city is in negotiations with Canadian Pacific to buy the land on Dewdney Avenue.

Investors will be announced in the coming months, Fiacco said.