A dilapidated building in the city of Dunkirk is proposed to be converted into new housing and hold a commercial business.

Lee Crewson with Lakeside Werks, LLC wants to convert the old Macaroni building, located at 23-25 Lake Shore Drive East, into an apartment complex. His company is behind the conversion of the former bank at the corner of Central Avenue and Fourth Street into apartments and commercial space.

He presented his plans for the Lake Shore Drive East property to the Chautauqua County Industrial Development Agency.

The project calls for a five-story mixed-use development including 11 residential units and first floor commercial space. The residential units would be one bedroom, two bedroom and studio units, ranging in size from 500 to 850 square feet, for both short-term and long-term rentals.

The short- and long-term rentals would be designed to support Dunkirk’s growing tourism market.

For the commercial space, there would be 3,000 square feet available.

Crewson said during the meeting that they don’t have a signed contract for the commercial space. It could be a retail business. There has been talk about a physical therapist relocating there as well.

The entire project is expected to cost $3.2 million.

This project is part of the Downtown Dunkirk Revitalization Initiative, which the city received $10 million.

The DRI designated $500,000 for the old Dunkirk Macaroni Supply Company building. Empire State Development also awarded a $1 million RESTORE NY grant for it.

Crewson noted how the property overlooks the Dunkirk Marina and city pier.

Although the building has been unused for several years, Crewson said it is “weather tight.” It was most recently used for storage but is currently empty.

Crewson said they want to start remodeling in the fall and have it available for rent by next summer.

County IDA Director Mark Geise said this project fits perfectly with what Dunkirk needs. “We’ve been talking about the need for housing for so long in this county. … We’re trying to attract more people to live here to fill open jobs and without housing, that makes it more difficult, so having this housing is important,” he said.

Dunkirk City Development Director Vince DeJoy also praised the proposed development. “This project fits and aligns perfectly with our strategy of downtown revitalization and our waterfront strategy,” he said.

The county IDA Board of Directors passed a “due diligence” resolution, which allows the IDA to start the process to do environmental studies, review options of financial assistance, and explore any legal issues that may come up.

A public hearing will need to be held before any Payment In Lieu Of Taxes agreements are authorized.