Until recently, R Street languished with an isolated, post-industrial vibe.

Warehouses, loading docks and abandoned railroad tracks formed the areaʼs spine. Many locals would wander into the area to catch performances at Studio Theatre, music at Fox & Goose or a Second Saturday show at the Art Foundry.

Five years ago, R Street began to throb with new life. R Street Marketplace, anchored by Safeway and Peet’s Coffee, was built at 19th and R streets. The Empire nightclub opened, and recently, the block saw the opening of Magpie Catering, The Shady Lady and 12 new lofts upstairs. On the street’s other end, CalPERS amped its image by erecting its impressive headquarters.

Wednesday night, business and property owners, as well as residents, will get a shot at having an impact on further R Street development during a public workshop.

The city and Capitol Area Development Authority (CADA) will present the latest updates and seek public input on a key segment of the R Street Corridor Project: the R Street Market Plaza, designed for 16th to 18th streets. The meeting is set for 6 to 8 p.m. at the CADA Event Center, 1322 O St.

“It is a fantastic project that we really hope will jump-start that area,” said Linda Tucker, spokesperson for the city’s Department of Transportation.

“We’d like to show them what we have in mind and get some input, keeping in mind that the budget is limited and we are looking to get the most bang for the buck,” she said.

The agencies are gaining ground on the plan to turn a 27-block-long stretch of the historic street into a thriving mixed-use neighborhood. The plaza between 16th and 18th is a critical feature of the planned infill development, adopted into Sacramento’s central city design plan in 2006. The city approved the corridor’s master plan a decade earlier.

The plan is being designed to bring more housing, jobs and services to the neighborhood, while making the area more walkable. The city also wants to encourage private investment and redevelopment of vacant, historic buildings.

Developers hope to increase R Street’s livability with a plaza that can do double duty. Most days, the two-block stretch would function as roadway, street-side parking and a sidewalk wide enough for businesses like cafés to spill out onto. But the area also could be closed off to host festivals, farmers' markets and art shows, said Tucker.

“Part of the idea was to provide some public space that is currently lacking in the R Street Corridor,” said CADAʼs R Street Development Manager Todd Leon. “This space will be designed to host these events, rather than forcing events into a retrofitted space.”

Market Plaza’s look and feel have been inspired by R Streetʼs unique, industrial streetscape. The plaza design includes trees to shade the plaza, outdoor furnishings and streetlights. Streetscapes and amenities like benches and light posts will be kept simple and lean toward industrial, Leon said.

The old railroad tracks would stay to maintain R Street’s historic importance and character, and because removing something of such historic value wouldn’t likely be approved under the California Environmental Quality Act (CEQA), Tucker said.

In the mid-1850s, R Street contained tracks for the Sacramento Valley Railway -- the stateʼs first railroad. The street later morphed into a warehouse district, home to such businesses as the California Winery, Palm Iron Works and McCaw Wood and Coal Yard, where Fox & Goose now stands.

The city and CADA still need to obtain funding for the $4 million Market Plaza construction. They’re currently working on the CEQA and design phases using $790,000 from the Sacramento Area Council of Governments (SACOG) and CADA, Tucker said.

Due to the funding issue, the first improvements will involve the roadway, lighting and trees. Later, the city will add shade structures, benches, trash receptacles and signs.

The design and CEQA review process on Market Plaza is expected to be completed next February, with construction to start in 2011 if funding comes through, said Tucker.

The agencies have already gotten $4.5 million for the 10th to 13th street portion of the project. That money came from SACOG, the state and CADA. Construction is expected to start next spring and finish by the end of 2010.