RENO — The building located at 495 Morrill St. was known for the unusual metal sculpture on its roof: a Volkswagen Beetle transformed to look like a large spider. Soon, the building will be known for something completely different. It will become one of the Redevelopment Agency's latest projects that will bring affordable housing and more retail to the downtown core.

The “bug” is now located at Scudders Volkswagen in Sparks and the building is set to start a new life. Developers Kelly Rae and Pamela Haberman, along with Shu S & E Inc., are transforming the old two-story building into lofts with retail space on the ground floor.

On Wednesday, the Reno City Council continued to pave the way for this project by agreeing to provide a few more water credits and assistance in building a sidewalk in exchange for requiring the project to contain affordable housing.

Long-time residents know the building once housed Fire Station No. 2 before becoming a men's homeless drop-in shelter. The shelter closed in 2005 and the building, owned by the city of Reno, sat vacant for years. Despite two separate attempts to sell the building at auction, there were no takers until October of last year when the property was transferred to the Redevelopment Agency for sale to the current developers.

The new lofts and retail are expected to begin the revitalization of the area creating 23 new jobs while retaining an additional 20 jobs. The new development will also increase the tax increment from the project from zero to $35,000 a year starting this year. Tax increment pays for redevelopment projects. By law, tax increment generated in redevelopment districts must be used for redevelopment projects.

Renovations have been ongoing since October and are expected to be complete in 60 days.