Mayor Martin J. Walsh announced plans to set aside space in Dudley Square's Ferdinand Building for startups. The city will shell out $120 million to renovate the structure and turn it into Boston public school offices, according to The Boston Globe.

The city will allocate between 3,500 square feet and 4,000 square feet as incubator space for businesses after the renovation finishes next year. The new building which will span 214,000 square feet will have six retail stores in its first floor. Business startups will occupy less than 2% of the said structure, the report detailed.

Walsh said in an interview on Monday: "Hopefully, this will spark other startups in the Dudley Square community."

The plan is expected to be formally announced through a speech on Tuesday at the Westin Copley Place hotel. Walsh said the city is also eyeing partnerships with tech firms. This initiative will be headed by the Office of New Urban Mechanics. This entity helps address city problems using technology, The Boston Globe reported.