The Boston Red Sox Triple-A affiliate is moving from Pawtucket to Worcester as part of a multi-million dollar redevelopment project, officials announced Friday. The club will now be known as the “Worcester Red Sox” and will play their home games at Polar Park.

Officials have signed a letter of intent to build a 10,000-seat stadium in the Canal District along Madison Street that is expected to be complete by March 2021, Worcester Mayor Joseph Petty said at a news conference that was attended by Massachusetts Lt. Gov. Karyn Polito.

“Today, we celebrate an exceptional opportunity for growth and development for Worcester and for the Commonwealth with the announcement of this ball club planning to relocate to Central Massachusetts,” Polito said.

The city is planning to construct an 18-acre development consisting of 250 market-rate apartments, a 150-room hotel, a boutique hotel with rooms overlooking the ballpark and 65,000 square feet of retail and restaurant space.

The project will also include infrastructure improvements to streets, sidewalks, lighting fixtures and the addition of new street furniture, tunnel lighting, and bike lanes in Kelley Square.

Red Sox Chairman Larry Lucchino said the deal marks a “major milestone on a journey that began 12 months ago.”

The development is expected to cost as much as $90 million. The city says it has already secured a developer.

Under the plan, the state will contribute $35 million, while Worcester will borrow funds and use revenue from lease payments, local property taxes and parking fees from the new development to pay off the loan.

“The Baker-Polito Administration is committed to working with our partners at the local level to support economic development opportunities across the Commonwealth to create jobs and strengthen communities,” Gov. Charlie Baker said in a statement. “We are pleased to continue to invest in the City of Worcester and look forward to working together to welcome a premier professional ball team to the state.”

A 250 to 500 space garage will be built across from the ballpark, the construction of which will be funded by the city, and serve the existing and planned development.

The team’s owners previously sought to build a stadium in Providence, Rhode Island, and asked Rhode Island for $120 million in subsidies.

That proposal died amid widespread calls from community members to keep the team in Rhode Island.

Fans had mixed emotions in Pawtucket.

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