Developers are breathing new life into Reading's old outlet district.

City officials announced Monday construction of a new grocery store at 8th and Oley streets.

They said the $6.3 million project, which includes a Save-A-Lot supermarket, will bring more than 100 jobs to the neighborhood.

"We are delighted to have a significant investment in the former outlet area that will help revitalize a neighborhood and bring additional employment opportunities for city residents," said Mayor Tom McMahon. "I am glad we could help bring the parties together to get this deal done."

McMahon and Al Boscov, chairman of Reading Future LLC, will take part in a groundbreaking ceremony at the site on Friday.

Oley Retail, LP, whose principal is local developer Alan Shuman, will build and operate the store.

Save-a-Lot operates more than 1,200 stores in 48 states.

"Each store also has a well-stocked section of fresh food and vegetables and it has an educational program to help families eat healthier on lean budgets," McMahon said. "We believe this will create positive food-sourcing alternatives for families in the neighborhood."

Many of the buildings around the 8th and Oley streets area, which was once home to the former Reading Outlet Center, have sat empty in recent years.

Shuman has been working to redevelop the old buildings for commercial and residential use as part of what he labeled Shops at the Roc.

Dollar General Store, Leidy's Neighborhood Butcher Shop, and SuperSuds Laundry are among the businesses that have already opened.