CHICAGO (CBS) — Amtrak has announced the selection of a Chicago developer to oversee plans for a more than $1-billion transformation of Union Station.

Riverside Investment and Development will lead the six-year project to add more than 3-million square feet of new commercial space at Union Station and surrounding property.

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“We think this is going to be good for Amtrak, be good for Chicago, and make that whole part of the town a much better place for everyone, including our passengers,” Amtrak CEO Wick Moorman said.

The first phase of the project will add a hotel above the Great Hall, 100,000 square feet of office space, two new 12-story residential towers above the Headhouse, and 110,000 square feet of new retail space, including a new food hall.

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The second phase would create two new 750,000-square-foot office towers on what is now a parking garage across the street from Union Station, and new landscaped terraces and plazas at the station.

The final phase would create a 500,000-square-foot residential tower above rail lines at Jackson and Canal, including open space and plazas at street level.

The redevelopment also will create enhanced street-level entrances, improved pedestrian traffic flow in and out of the station, and new landscaping and open spaces.

“With today’s announcement, we invest in a future that will be richer than the past; one that is not just nostalgic, but one that allows the Chicago economy to continue to grow, be vibrant, and continue to allow the city of Chicago to be a world-class economy,” Mayor Rahm Emanuel said Thursday morning.

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According to the mayor’s office, the project will create about 7,500 construction jobs and 7,000 to 8,000 permanent jobs once the redevelopment is completed.