The Board of Works and Public Safety voted to accept more than $200,000 from the state.
It'll help pay for a "streetscape" project on Third Street, from Poplar to Cherry.
From painting to planting and paving, it'll change the way Downtown Terre Haute looks.
Mayor Duke Bennett believes it will slow down traffic, and make the area safer for walkers.
He also hopes it'll encourage more downtown businesses to step up.
"A section of town that we've really done something special with. And so I think it will help people to really think big about cleaning up and doing things to make their area look better. Business, citizens, anywhere in the city. Our goal is to continue to make this look as clean and neat as we possibly can," said Mayor Bennett.
Beside the money from state, the improvements will be paid for with federal dollars and the city's Economic Development Income Tax.
Most of the work could be finished later this year.
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