"We'd like to see this get started before the winter, at least with some demolition," said Harausz. "We had a slight delay with the financing, but everything is back on track."

Lynn officials earlier this year signed a formal agreement Oasis Development Enterprises, which intends to renovate a cluster of Market Street storefronts and construct apartments with high-speed Internet access. Harausz estimated the project value at 6.5 million.

Since the signing, Oasis has secured its portion of conventional funding as outlined in the project financing package. Some of the $1.4 million came from foreign banks, and that caused an initial delay, Harausz said.

The city's portion of the funding included a grant from the U.S. Department of Housing and Urban Development (HUD). However, it was not granted for the full amount sought, causing yet another delay. The HUD decision forced city officials to restructure their financing commitment.

The project financing package is divided into three parts. The city will contribute $3 million. Oasis will add $1.4 million in financial resources and another $2.2 million in equity.

The development site encompasses a collection of properties within the Munroe Street Historic District. It spreads over two city blocks, connecting Munroe Street to Oxford Street via a pedestrian walkway.

The first phase of the project calls for remodeling and upgrading three historic structures, namely the former Goldberg Furniture store, the defunct Belkin stationary store, and Pennyworth's clothing store, all on Munroe Street. The former Jerry's clothing store will be demolished, making way for a new two- story structure that offers ground-floor retail and second-floor commercial office space.

The third, fourth and fifth floors above the Goldberg building will be converted to small apartments wired with high-speed Internet access, according to Ivan Chow of Oasis Development.

The developers will also receive several tax incentives as part of the agreement. Among those are property tax abatements of approximately 100 percent on new construction for the first eight years, and a 70-percent abatement on the value of new construction for an additional seven years.

A combination of federal historic tax credits and state investment tax provides the developers with another $1 million in financial incentives, Harausz said.