BOSTON -- Residents of Boston’s Fenway neighborhood celebrated the news Saturday that a once-popular strip of businesses that was gutted by a fire in January may soon be on the rebound.

The stretch of former eateries and neighborhood hangouts, which runs down a quiet block of Peterborough Street, has been empty since a blaze tore through all seven storefronts on the strip, causing an estimated $5 million worth of damage.

The property owners, 84-100 Peterborough Realty Trust, were initially enthusiastic about rehabilitating the businesses, but when the project remained at a standstill this summer, neighbors began to worry that Fenway’s “restaurant row” might be scrapped for a high-rise development.

In September, community leaders held a block party outside the burned-out businesses and invited school students to paint a mural over the charred buildings to draw attention to the stagnant redevelopment effort.

City Council President Michael Ross delivered the neighborhood its first piece of good news since the fire this weekend, however. Ross said the four property owners have reached an agreement to rebuild the property, following a five-hour meeting at City Hall on Friday.

Photos: Restaurant Row Fire

Although the details of the agreement remain confidential, Ross said the property owners are working to put businesses back in the storefronts. The city councilor said it’s uncertain what form the final development will take, but it may be a few stories higher than the current structure.

Ross said he organized Friday’s meeting to help the members of the trust work through an internal disagreement that was stalling a decision about the property.

“These aren't bad people, they're in a legal dispute, but when you bring people together, people want to respond, and they did here,” said Ross.

The Jan. 6 fire that ripped through the block is believed to have started in Thornton’s Fenway Grille and then moved to Bon Cleaners. Other restaurants displaced by the fire include Rod-Dee Thai Cuisine, Greek Isles Restaurant, Umi Japanese Cuisine and Sushi Bar, Sorento’s Italian Gourmet and El Pelón, formerly a perennial pick for "best burrito in Boston."