The Chautauqua County Industrial Development Agency will provide $125,000 in equity for the city's application for a $280,000 Urban Development Action Grant.
The grant would go toward construction of a 25,000-square-foot building that can be used for light industry.
The building would be considered speculative, since no tenants have been found yet, city Development Director Alex Pelinsky said.
The Common Council met Tuesday evening and officially approved the application for the grant to the federal government. The deadline for filing the application is today.
The 4.7-acre site is bounded by Monroe and Orchard streets, the Norfolk Southern tracks and Lamphere St. which is Route 60.
The Dunkirk Local Development Corp. has a $5,000 option for the purchase of 3.6 acres of land. The remainder is owned by the Dunkirk School District. According to city officials, the School Board is willing to sell the land to the city for a nominal sum.
The remainder of the financing package is $775,000 in an industrial revenue bond, and $25,250 from the Dunkirk Local Development Corp., which is funded through the proceeds of previous federal grants given to the Dunkirk Ice Cream Co. and the Chemical Process and Supply Co.
Pelinsky further said the city will meet with Chautauqua County IDA officials Friday.
A special meeting of the board of directors of the Dunkirk development agency is scheduled for 5 p.m. Tuesday.