SACRAMENTO, Calif. -- Plans for transforming the old Southern Pacific rail yard in downtown Sacramento were unveiled Thursday. The plans are substantially different than earlier proposals, which concentrated on offices and entertainment.

The proposed classic rail station would become the transportation hub for trains, busses and light rail connections. But at the heart of the design by Millennia Associates is something that is quickly drawing praise -- a new residential neighborhood.

After years of discussion and environmental cleanup, there are solid plans for the 240 acres of prime land. The plan shows new through-streets on 6th and 7th streets.

There would be a depot district that includes the transportation hub and a large central plaza near the historic railroad buildings. There would also be a new Museum of Railroad History and a new residential area of about 16 square blocks.

"We don't see a strong emphasis here on single family (homes). That's pretty well in the suburbs. (What) we do see, though, is more of the type of loft housing -- one and two bedroom units, some for sale, some rental and much of it affordable," said Millennia Associates spokesman Richard Rich.

Several small parks are also planned. And an area has been set aside for a new basketball arena. But the arena idea has been dimming in recent months.

The future home for up to 10,000 people is still undergoing massive toxic cleanup. All contaminated soil will have to be removed.

Consultants said the project would have to be funded through a combination of private and public money.

Next comes a series of community meetings. A final plan could go the Sacramento City Council by March.