An out-of-town concern is interested in converting the former School 5 on West Second and Mullet streets into a combination factory and residence.
Mayor Robert Kesicki discussed the proposal with the board of directors of Dunkirk Local Development Corp. Monday night.
The company makes canvas luggage, Kesicki said. Dunkirk is a good place for this type of sewing industry, he said, because workers from the now-closed M. Wile & Co. factory that made men's slacks are still in the area.
The company is expected to seek a loan and other financing.
Board Member James Muscato, who serves as councilman for the ward where the vacant building is located, suggested contacting neighbors about the proposal for the building.
Kesicki also announced that two other loans are under consideration:
$50,000 for an unnamed party to purchase the equipment and reopen the Cafe Expresso restaurant at 417 Central Ave. The unnamed party also has applied for a loan from the Chautauqua Microenterprise Loan Fund.
$75,000 as part of the financing package for the Resource Center, which will open a dental clinic on the first floor of 314 Central Ave. The project currently has a $330,000 grant from the Gebbie Foundation for equipment and received $55,000 from the city's 2000 federal Community Development Block Grant.