The Lockport City Council granted approval at its May 6 meeting for the demolition of the former Dellwood Tire property, which is expected to take place in late June or early July.

The property, located at 711 State St. at the north end of the downtown area, was purchased by the city earlier this year and then sold to FORE Investments, the same developer that created The Port apartments that opened last year on State Street.

According to city documents, FORE is prepared to begin an accelerated construction process on the Dellwood property for another mixed-use apartment and retail building, which will be known as Livery Row.

In order to prepare the site for construction, the city approved $350,000 in tax increment financing funds for a contract with Holladay Construction Group to demolish both the former tire shop and the structure across the street at 108 7th St., which the city purchased in April.

That property, which currently contains a single-family house, as well as the empty lot adjacent to it will be used to create surface parking for the new building and the surrounding downtown area.

A tax increment finance district is a development tool local governments use to encourage development or redevelopment in blighted areas that would be too expensive to improve with private dollars alone.

It diverts increased sales or property taxes generated to pay for specific to improvements within the district. A TIF can last up to 23 years.

The resolution ordering the use of the funds also allowed for the use of surplus funds for the demolition of an residential building at 723 State St., on the other side of Dellwood Tire. That residence was also approved for purchase by the city at the May 6 meeting at a price of $195,000 plus closing costs.

The current tenant is expected to vacate the premises by June 30.

The property, once demolished, will remain vacant, according to City Administrator Ben Benson.

City documents state the building and structures will be removed to “eliminate any pending potential obstruction of the floodway of Milne Creek, allowing for a more conducive area adjacent to the Livery Row development.”

The property will be stabilized to create a better over flow route from the creek to the canal and will “probably be beautified in the future” but that a full plan for the site “has not been designed yet,” Benson said.

Demolition of Dellwood Tire and 108 7th St. should start by July, he said.

In addition to the demolition of the existing structures, the contract also includes work to stabilize the site so construction can begin on the new development.