Work has begun to convert a string of vacant commercial buildings along Mississippi Street in Buffalo's Cobblestone District to office and residential space. Buffalo developers Samuel J. Savarino and Christopher L. Jacobs are kicking off their $15 million project by converting a four-story structure to an office complex. The development is located along Mississippi Street, between Perry Street and South Park Avenue.

"We'll start by demolishing a small, ramshackle building and a lean-to on the site, then start gutting the four-story building to develop office space," Savarino said.

Savarino's firm, Savarino Construction Services, will take two floors of the renovated building, moving 20 employees to the emerging neighborhood. Savarino and Jacobs will seek tenants for the remaining two floors.

"We plan to be in there in February, so it's full-speed ahead," Savarino said.

The price tag for the first phase of the renovations is $3.5 million. The developers have gotten necessary approvals from the Buffalo Preservation Board and city Planning Board to get the project under way.

Meanwhile, design work is continuing on Phase Two of the Mississippi Street project, which will see the five-story warehouse building at the corner of Mississippi and Perry streets converted to 36 condominiums. Construction is to begin by mid-2006 on what will be known as Cobblestone Lofts.

"We'll be targeting young professionals working in the city and some empty nesters," Savarino said. "These will be nicely done one- and two-bedroom units, in the $150,000 to $250,000 range."

Ten of the condos will come with underground parking, while the rest will have secure, surface parking on site. All will have private patios.

The project also will include development of 20,000 square feet of retail space, which is expected th house a restaurant. Savarino said the recent announcement by the Seneca Nation of Indians of plans to locate a casino in Cobblestone could end up helping the commercial and residential development.

"It could bring us residential tenants and interest retailers who want to capture some of the casino audience. I think the impact will be more positive than negative," the developer said.

"We wouldn't be happy if they put in a giant, neon casino sign. Hopefully, we'll have ample opportunity to review that sort of thing as they plan their development," Savarino said.