A state council has approved a huge grant to help build an ambitious project in Downtown Redding. K-2 Development wants to tear out what remains of the old Dickers Department Store building to make way for a 4-story mixed-use building. It would have more than 21,000 square feet of retail space on the ground floor, with 79 residential units on the top 3 floors. The project would also open up some streets. Market Street, which currently splits at Tehama Street, would extend two blocks to the south to Yuba Street, and both Yuba and Butte Streets open up as well, to some degree. The city helped K-2 through the grant process and Tuesday the Strategic Growth Council approved a 20 Million Dollar Affordable and Sustainable Housing Grant. The funds come from the state’s cap and trade greenhouse gas auctions. A total of 289 Million Dollars was approved for 25 different projects around the state. The total price tag of the construction is estimated at 37 Million Dollars.