Individually, the construction of a hotel, condominiums, an upscale restaurant and retail stores in Squirrel Hill would be a boon to its present small business mix.

But proposed together as a $50 million residential/retail mix at the site of the former Poli restaurant, the project not only would dramatically remake the Squirrel Hill entrance from the Parkway East but become the largest development project in the neighborhood's history.

Called Forward Square, the development by R.E. Crawford and Cambridge Venture Partners is proposed on a 150,000-square-foot site at Murray and Forward avenues. The nine-story project would include a six-story hotel, 20 condos on the three other floors, a restaurant similar to Sonoma Grill, several retailers and a two-story water plaza.

Sales agreements have been reached both for the former Poli property on Murray Avenue, including its two parking lots on lower Forward, and with Alderson-Forward Properties, which owns an adjacent building at 5800 Forward now housing five businesses, including the six-screen Squirrel Hill Theater.

Plans for the project were filed this week with the Zoning Board of Adjustment. A zoning board public hearing on the project is scheduled for Aug. 7.

City Council President Doug Shields said the project is "a dynamic development in a part of Squirrel Hill that has not seen any recent investment.

"Reaction, so far, has been positive," he said. "From what I can see, it's a good design."

Steven Hawkins, president of the Squirrel Hill Urban Coalition, said a community meeting with the project's developers is set for Aug. 4 at 7 p.m. at the Jewish Community Center.

The Forward Square condos are expected to be priced at less than $350,000 each and vary in size from 700 to 1,400 square feet, said Tom Chunchick, executive vice president of R.E. Crawford. The restaurant, he said, would go in the former Poli space. He said the company already is working with an operator to run the hotel.

Plans call for the entire development to be environmentally friendly, he said.

R.E. Crawford, run by 49-year-old Bob Crawford, is a rapidly growing general contractor based in Springdale Borough, with billings expected to be $75 million this year, up from $55 million in 2007.

Cambridge Venture Partners are Mr. Crawford; Steve Davis, vice president of Pennsylvania Commercial Real Estate; and real estate attorney Russell P. Mills, of Mills & Henry.

Cambridge has been involved in student housing projects throughout the mid-Atlantic region, including 38 condominiums at Virginia Tech University in Blacksburg, Va., 406 condos and apartments at West Virginia University and other projects in Harrisonburg, Va., and Blairsville, Indiana County.

R.E. Crawford's projects around the country run the gamut from strip shopping centers and restaurants to churches and health care buildings. Local projects have included the two Rivertech buildings on the South Side near the UPMC Sports Performance Complex and an ongoing hotel project on Forbes Avenue.

Mr. Chunchick said the Forward Square project is a continuation of Mr. Crawford's "great passion for this city."

"This will be just a dynamic portal to this part of Squirrel Hill," Mr. Chunchick said, "and a great catalyst" for further development.

Poli restaurant, a Pittsburgh institution since 1921, has been closed since December 2005. In March 2007 it filed for Chapter 11 bankruptcy protection.

The two-story, 16,500-square-foot building and a small parking lot across the street were listed together at a price of $1.3 million. A separate 1.4-acre parcel nearby that Poli used for valet parking was valued at $800,000.

The 17,505-square-foot property at 5800 Forward was last sold in 2000 for more than $3.5 million, according to Allegheny County records.

Mr. Chunchick said the Poli property was purchased about six months ago and the other parcel within the past few weeks. He said he did not know the sale price for the properties.

In addition to the theater, other businesses to be razed are Pizza Amier, the Tango Cafe, the Gay and Lesbian Community Center and U.S. Professional Karate. Unaffected are Forward Lanes and other businesses farther south on Forward and the Howard Levin Clubhouse and other properties that are part of the Morrowfield Apartments building west on Murray.

The karate school's owners, Vicki and George Mowod, have already secured a new site -- at 2345 Murray Ave. in a building that houses a Starbucks -- but its visibility to five directions of traffic for the past 25 years is hard to match.

"The sad part is we lose that," Ms. Mowod said. "We need 25 more students to move into that building, so now I have to do marketing without my windows, and that's a big expense."

Liliana Petruy, owner of Tango Cafe, said she renewed a one-year lease for her restaurant last month.

Business had been good with the theater nearby, she said.

"I really don't know where we will go."