Construction of Landmark Lofts, the approved mixed-use development at the corner of Cemetery Road and Franklin Street, could begin late next month, according to Hilliard's economic-development director, David Meeks.

Construction of Landmark Lofts, the approved mixed-use development at the corner of Cemetery Road and Franklin Street, could begin late next month, according to Hilliard's economic-development director, David Meeks.

Construction was expected to begin last summer, but the required restructuring of financing for public improvements associated with the development, including the realignment of Franklin Street, was a factor in its delay, Meeks said Monday, Feb. 1.

Meeks said the developer has applied for demolition and construction permits.

"We're excited to get started," said Michael Kelley, vice president of Kelley Cos.

Kelley Cos. and the Robert Weiler Co. are partners with Kohr Royer Griffith, a developer that established Landmark Lofts LLC for the particular Hilliard development.

The project was delayed last year because of the need to restructure a tax-increment-financing agreement that would finance the public-infrastructure improvements, Kelley said.

"We hope demolition will be done by the end of March," Kelley said, but it could extend into April.

Demolition will begin at the back of the parcel, Kelley said, to allow as much time as possible for Starliner Diner to operate until it relocates in advance of construction.

Previous plans called for the diner to reopen within Landmark Lofts, but that appears to have changed.

Molly Mahoney, owner of Starliner Diner, 5240 Cemetery Road, said she expects to have a lease signed by the end of next week to relocate the restaurant, though she declined to specify where until the lease is signed.

The eclectic diner, which features a mural along the entire side of the building, opened at the site in 1994.

Mahoney said she explored staying within the new development but she now is all but certain the diner will relocate.

She said as the project progressed, the builders advised her it would delay the completion of the project if she remained at her original site.

Mahoney said she has been on a month-to-month lease since the property transferred ownership a few years ago in advance of the project.

"We're moving for the sake of the project ... and all of us working together (on a new location for us)," Mahoney said.

Demolition of Starliner Diner and other structures on the site -- except for the inoperable grain elevator that will be refurbished and will serve as a community building for apartment residents -- will precede construction, Kelley said.

"You'll see a clear site before new construction begins," he said.

Landmark Lofts is expected to have 204 apartments, a 6,000-square-foot clubhouse and 14,000 square feet of retail and commercial uses on 6.2 acres.

In a related project, Hilliard will improve Franklin Street from the north end of the Landmark Lofts development to Main Street, about a 900-foot section of the road. Landmark Lofts LLC will be responsible for the part of the road in its development.

The city project includes the construction of sidewalks, curbs, street lighting, pedestrian crossings and on-street parallel parking, according to Butch Seidle, Hilliard's public-services director.

Hilliard City Council on Jan. 25 approved legislation authorizing expenditures not to exceed $225,000 for the first phase of the project, which is part of the current capital-improvement-projects budget.

The first phase of the city's Franklin Street improvements will include only preliminary designs. The total cost of planning and design is estimated at $472,000.

The design work should be completed in 2017, according to the authorizing legislation.