Syracuse, N.Y. — Mello Velo, a bicycle retailer, repair shop and cafe in the city's Westcott neighborhood, is planning a major expansion.

The shop plans to renovate and relocate to a former industrial building at the corner of Canal Street and Walnut Avenue, just off Erie Boulevard. Two floors of the 10,000-square-foot building will be dedicated to the bike business and cafe.

The third floor will house three apartments, although that portion of the project won't take place immediately.

Mello Velo started in 2009 with the help of the Small Business Development Center at Onondaga Community College and a $10,000 loan from Syracuse Cooperative Federal Credit Union. It quickly outgrew its current space at 556 Westcott St., owners Sara and Steve Morris said.

Things are cramped in the shop's second-floor space to say the least. It's hard to walk in without bumping into something, Sara Morris said.

The kitchen for the cafe is about the size of a residential bathroom.

"We can't do anything in this space," Sara said. "It just wears on everyone, including customers."

The first floor of the new building will house the cafe, repair shop and sales area. An open staircase will lead to a large, second-floor showroom.

The shop has 12 employees.

The new building is still close to Mello Velo's main customer base on the Syracuse University Hill. It's also near downtown Syracuse and should also allow the business to reach new potential customers there, including residents and bike commuters.

The Morrises plan to add community space to the building and outdoor seating for the cafe. They want to add a roof garden as well.

The Morrises already own the new building. They bought it earlier this year for $190,000, according to county property records.

Renovations will cost at least $400,000 more. They hope to be in the new space by the fall.

The Morrises have been working on the move for more than three years. They looked in the Westcott area first, but couldn't find anything suitable.

Financing for the project includes a Small Business Administration loan from the Greater Syracuse Business Development Corp. and Community Bank of DeWitt and a $50,000 Main Street grant from National Grid.

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