The $2.4 million project to convert 401 Central Ave., Dunkirk into apartments and commercial space will begin this fall after the county’s Industrial Development Authority approved the necessary tax abatements on Tuesday.

Construction work to convert a former bank in Dunkirk into apartments and commercial space will begin shortly after tax relief was granted to developers.

On Tuesday, the Chautauqua County Industrial Development Agency Board approved tax abatements for 401 Central, LLC. The board’s action will support the purchase and renovation of the property 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 property tax, sales tax and mortgage recording tax abatements.

It was the last piece the developer needed to proceed and prepare for construction.

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

Built in 1938, the building was long the headquarters of Lake Shore National Bank. It was later used by Marine Midland, HSBC and then First Niagara Bank, which ceased operations at the location in 2016 after First Niagara was purchased by KeyBank.

The building has been empty ever since and is in a state of severe disrepair.

Lee Crewson of 401 Central, LLC attended the IDA meeting virtually on Tuesday. After the vote, he told IDA members that they have already installed a new roof and plan to start “Construction work will begin on a large scale in the coming weeks.”

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

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

They hope to complete the work by September 2025.

The cost of the entire project is estimated at $2.4 million.

The developers received a $150,000 grant from the state’s Regional Economic Development Council and $900,000 from the Downtown Revitalization Initiative, which had previously been awarded to Dunkirk.

According to IDA officials, the financial assistance provided by IDA includes sales tax, land tax and property tax reductions over a 15-year period. In addition, the new tax replacement payment totaling $243,864 will be made to the tax authorities concerned due to the new capital investments during the same period.

“Our plan is to provide market-rate housing for professionals who want to live downtown and close to their workplace. We also look forward to providing commercial space in a key Dunkirk corridor to enhance the business district,” said Gary Crewson of 401 Central, LLC. “We are 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 operational.”

Mark Geise, chief executive officer of the County IDA, said he is excited to begin this transition. “Communities across the country are faced with the challenge of having old bank buildings that served an important purpose in the 20th century but are becoming outdated with the advent of digital and online banking in the 21st century. This is exactly the type of project our PILOT adaptive reuse program is designed for, and it is exactly the type of project that downtown Dunkirk needs and will support.”

IDA officials noted “Adaptive reuse projects” are qualified projects that adapt old sites or buildings for new uses, possibly including a mix of business and commercial uses or market-rate housing. Adaptive reuse projects are those that benefit Chautauqua County by rehabilitating a blighted site or building, encouraging development using existing infrastructure, and creating new economic activity at problem sites or buildings to help eliminate neighborhood blight.

“It’s great to see this project coming to fruition in Dunkirk. If we are to grow our communities here in Chautauqua County and reverse the decades-long trend of population decline, we must provide modern, market-rate housing for working residents, especially those who want to live close to their jobs.” said district mayor PJ Wendel.

“We are delighted that Gary Crewson and his team are breathing new life into this vacant and dilapidated building in our central business district,” said the mayor of Dunkirk, Kate Wdowiasz. “This project will be the first Downtown Revitalization Initiative project launched during this procurement process. The mixed-use project will fundamentally transform Central Avenue, and I believe this is just the beginning. So providing this type of support is consistent with the IDA and 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 to come.”