The $2.4 million project to turn 401 Central Ave., Dunkirk into apartments and commercial space will begin this fall, after the county Industrial Development Agency approved the necessary tax incentives Tuesday.

Construction to turn a former bank in Dunkirk into apartments and commercial space will begin shortly now that the developers have been approved for tax assistance.

On Tuesday, the Chautauqua County Industrial Development Agency Board of Directors approved tax incentives for 401 Central, LLC. The board action will support the purchase and renovation of property located at 401-403 Central Avenue in Dunkirk, known as the former Lake Shore National Bank building, as well as an adjacent parking lot on Lark Street. The incentives include real property, sales tax, and mortgage recording tax abatements.

It was the last piece needed by the developer to move ahead and prepare for construction.

The building is prominently located at the intersection of Central Avenue and 4th Street, diagonal from City Hall and three blocks from the waterfront.

Built in 1938, the building was the longtime home of Lake Shore National Bank. It was later used by Marine Midland, HSBC, and then First Niagara Bank, which closed operations at the location in 2016 after First Niagara was bought by KeyBank.

The building has sat vacant ever since and has deteriorated substantially.

Lee Crewson with 401 Central, LLC attended Tuesday’s IDA meeting virtually. After the vote, he told IDA members they have already put on a new roof and plan to start “full blown construction in the coming weeks.”

During the meeting it was noted that the building will be converted into five apartments and have an additional 1,800 to 2,800 square feet of commercial space available.

The application notes the project will create 24 construction jobs and seven permanent full-time jobs.

They hope to have the work completed by September, 2025.

The entire project is expected to cost $2.4 million.

The developers received a $150,000 grant from the state Regional Economic Development Council, and $900,000 from the Downtown Revitalization Initiative that Dunkirk was previously awarded.

According to IDA officials, the financial assistance provided by the IDA will include sales tax, mortgage recording tax, and property tax abatements over 15 years, with $243,864 in new total Payment In Lieu Of Taxes which will be paid to the affected tax jurisdictions during that same time period as a result of the new capital investment.

“Our plan is to provide market rate apartments for working professionals who want to live in the downtown area, close to where they work. We also look forward to providing commercial space in a key corridor of Dunkirk to help enhance the business district,” said Gary Crewson with 401 Central, LLC. “We’re grateful to New York State, the City of Dunkirk, and the CCIDA for helping us move this project forward and can’t wait to see it completed and ready for use.”

County IDA Chief Executive Officer Mark Geise said he is looking forward to seeing this conversion begin. “Communities across the country are challenged with legacy bank buildings that served a key purpose in the 20th century, but have become outdated with the advent of digital and online banking in the 21st century. It’s exactly the type of project our adaptive reuse PILOT program is intended to be used for, and it’s precisely the type of project that the City of Dunkirk’s downtown needs and will support.”

IDA officials noted “Adaptive Re-Use Projects” are qualified projects that involve adapting old sites or structures for new purposes, including potentially a mix of business and commercial uses, or market-rate housing. Adaptive Re-Use Projects are those that will benefit Chautauqua County by redeveloping a blighted site or structure, promoting development using existing infrastructure, and creating new economic activity at troubled sites or structures to assist in eliminating neighborhood blight.

“It’s great to see this project come to fruition in Dunkirk. If we want to grow our communities here in Chautauqua County and reverse the decades-long trend of population decline, we need to have modern, market-rate apartments available for working residents, especially those who want to live close to where they work,” said County Executive PJ Wendel.

“We’re thrilled to see Gary Crewson and his team breathe new life into this vacant and deteriorating building in our central business district,” said Dunkirk Mayor Kate Wdowiasz. “This project will be the first Downtown Revitalization Initiative project to have been started during this award process and the mixed-use project is going to be transformational for Central Avenue and I believe it’s just the beginning. So providing this type of assistance is in line with the IDA and the city’s vision and goals for revitalizing downtown Dunkirk. Our city is definitely on the move and we can’t wait to see it continue in the months and years that lie ahead.”