The federal government will be investing $125,000 in the century-old St. Stephen, N.B., town hall to repair air quality and issues and remove mould.

MP Karen Ludwig made the announcement on Friday, saying “promises made are promises kept.”

Residents in the area are happy to hear it.

“It's a historical building, a total icon," said St. Stephen resident Wendy Greenlaw.

“It's a building that over the years every time you drive by you see it,” said St. Stephen resident Wendy Brown. “It's really old and rundown but it's there in the back of your mind and memory."

The town council voted earlier this year to demolish the 128-year-old building after a report showed it needed $2 million in repairs and renovations.

Mayor Allan MacEachern said he desperately wanted to save the building, but the $2 million price tag was sobering. But with heritage development on board and help from all levels of government MacEachern believes the unique structure now has a future.

"We're excited that it's finally come to the point that we can hit the start button on this and save this building and start moving forward," he said.

St. Stephen has approved $100,000 will be invested towards the town hall’s repairs. The provincial government has not yet announced how much it will contribute. 

Work could start as early as Monday.

With files from CTV Atlantic’s Laura Brown.