A Cincinnati firm has added a mixed-use commercial and residential building to its redevelopment plans for the former site of the Delaware Hotel.

A Cincinnati firm has added a mixed-use commercial and residential building to its redevelopment plans for the former site of the Delaware Hotel.

The complex known as Delaware Place currently features a 49-unit senior apartment building and seven duplexes. Delaware Place is located at the intersection of South Sandusky Street and Weiser Avenue west of U.S. Route 23.

The Delaware Hotel occupied the property before the city bought the hotel for $227,000 in 2010 and razed it.

Less than a month after seeking initial approvals to construct a new 44-unit senior-housing building west of the current apartments, Miller-Valentine Group brought plans for a third phase before Delaware City Council. The third phase will feature a two-story, 24,000-square-foot building featuring 11 senior apartments and 8,000 square feet of commercial space.

Delaware City Council on Monday, Feb. 9, approved preliminary development plans and a rezoning amendment for the expansion project.

Denise Blake, developer with Miller-Valentine Group, told council the firm decided to pursue the third phase of the project after agreeing to purchase a 0.5-acre parcel at 339 S. Sandusky St. The developer plans to use the site, formerly home to the Oakside Animal Clinic, as a parking lot for the complex's mixed-use building.

The mixed-use building will front South Sandusky Street at the southwestern edge of the property.

Blake said the purchase agreement for the site is contingent on Miller-Valentine Group receiving tax credits for the project through the Ohio Housing Finance Agency. The firm must file its application for the credits by Friday, Feb. 20, and will know if the project will receive the credits by mid-June.

Miller-Valentine Group received $1.1 million in tax credits ahead of the first phase of construction. If the firm receives credits for the second and third phases, construction on the expansion project could begin in spring 2016.

The project's first phase is fully occupied, and the complex's waiting list would fill more than half of the units planned for the second and third phases.

The firm also announced one possible tenant for a portion of the office space in the mixed-use building. Blake said the nonprofit Community Action Organization of Delaware, Madison and Union Counties has expressed interest in becoming a tenant.

"It's obviously very preliminary, but it's encouraging to see," she said.

Councilman Joe DiGenova said he was impressed with the work Miller-Valentine Group did on the first phase of the project and looked forward to the expansion. He also said he would like the firm to continue pursuing development projects in the city.

"Hopefully, they're going to buy some property across the street," he joked.