LEBANON — Construction of a four-story building on Mechanic Street is slated to begin next spring after city officials approved plans for the mixed-use structure this week.

The Lebanon Planning Board voted unanimously Monday to OK plans for 26 apartments and an adjoining commercial space at 195 Mechanic St. Meanwhile, they held off on a decision on whether to approve a separate project involving 11 apartments at a downtown site that also would be redeveloped.

The Mechanic Street property, which is owned by Ed Kerrigan, sits between the American Legion Post 22 building and Carpet Mill on Route 4 and was the longtime home of Blodgett’s Sash and Door.

“I’m thrilled as you might imagine,” Kerrigan, the founder and former owner of Jake’s Coffee Co. and Jake’s Market and Deli convenience stores, said Thursday of the decision.

Kerrigan said redeveloping the 1.3-acre property wasn’t a priority when he purchased it about three years ago. But the March closing of the Blodgett’s store made him reconsider.

The installer of kitchens, baths, windows and doors was in business for more than 30 years and occupied a 3,400-square-foot space on the property until filing for Chapter 7 bankruptcy.

“It didn’t really make sense to try to put a tenant in that space for a short period of time,” Kerrigan said.

He plans to demolish the Blodgett’s building and a 7,500-square-foot mixed-use building also on the parcel that contains office space and three apartments.

In their place, Kerrigan would build a 36,525-square-foot L-shaped structure. A large, four-story section will house 10 one-bedroom units and 16 two-bedroom apartments, while a one-story portion will have space for commercial uses.

Mike Kiess, the workforce housing coordinator for Vital Communities, said Thursday that redeveloping properties by using existing sewer, parking and infrastructure is a “great idea.” Developers should attempt to re-imagine a space before starting fresh, he said.

An office, retail space or a laundromat could have storefronts in the new building, according to plans submitted to the city. The project will have 60 parking spots, with 26 of those underground, the plans said.

Kerrigan said the building is designed to resemble the nearby Jake’s Coffee Co. property, using “traditional” materials such as brick and clapboard siding. The structure is situated so that residents would have views of the Mascoma River and surrounding woods rather than Route 4 traffic, he added.

“From a construction perspective and aesthetic perspective, it will create a nice living environment for tenants that seems to work well,” he said.

Planning Board members had few questions about the project and focused their questions on whether Kerrigan or the city should be responsible for building a sidewalk. The street is expected to be reconstructed as part of the ongoing combined sewer overflow, or CSO, projects.

However, board members did pose questions about a separate project, a planned apartment building on Spencer Street.

Meg Carleton hopes to convert an 8,740-square-foot building at 37 Spencer St. into 11 studio apartments and about 7,248 square feet of commercial space.

“The building has been in slow but steady decline since its heyday as a structural steel manufacturer, and even then, it was not considered a ‘pretty’ place,” Carleton wrote in a letter to the city. She added that apartments would make it financially feasible to finally upgrade the space.

Planning Board members commended the project for revitalizing the neighborhood, but some worried about safety and how tenants would interact with nearby industrial buildings. The board will continue to discuss the proposal when it meets again on Nov. 25.

Tim Camerato can be reached at tcamerato@vnews.com or 603-727- 3223.