DENVER (CBS4)– What was once a popular Denver restaurant and bar on South Broadway will be restored and turned into micro apartments.

The historic building at 1st and Broadway has been empty since 2013 when the El Diablo restaurant closed.

A developer had wanted to turn it into 350-sq. ft. micro apartments. Now it appears the city is ready to move the project along.

El Diablo on Thursday (credit: CBS)

Under the proposal, the City of Denver will give developers a low-interest loan as well as more than $2 million in tax breaks.

In return, the apartments will be set aside as affordable housing for low-income residents.