Fairfield was awarded a $500,000 grant from the Iowa Economic Development Authority.
The city applied for the grant in January and funding will come from the Community Development Block Grant. Fairfield will use the federal funding for facade improvements on several businesses around the square.
"We worked with 17 different property owners in the downtown because this is going to be a public-private partnership where we're going to share 50 percent of the grant proceeds with property owners to do some of the work on their storefronts," said Fairfield Mayor Ed Malloy.
Next, Malloy said the city will finalize 15 properties to be worked on.
The design phase will likely take place over the next few months. Fairfield hopes to begin construction in the spring of 2015.