MARSHALL — Construction on a proposed mixed-use building development in Marshall’s downtown could begin this spring, members of the Marshall City Council learned Tuesday.

If it moves forward, the first phase of the project would be a three-story apartment building at North First Street and Lyon Street.

Marshall Economic Development Authority Director Lauren Deutz went over the proposal during an update to the council on Tuesday evening. Developer CBC Fischer Group wants to build a total of three buildings downtown, with a mix of apartments and street-level commercial space.

“We’ve discussed this property a lot,” Deutz said.

The city has been looking for a potential developer for “block 11” for years.

Block 11, located between College Drive and North First Street, is the same downtown block where the Varsity Pub and Extra Innings is located. Aside from the Varsity Pub property, the block is mostly vacant lots owned by the city.

Last year, the EDA received a development proposal from CBC Fischer Group to build apartments and commercial space on Block 11. The city approved a pre-development agreement with CBC Fischer that expired Dec. 31.

Deutz went over some of the details of the group’s proposal. CBC Fischer Group is planning a total of three buildings, each three stories tall. The first phase of the project would be an apartment building with 33 one-bedroom units and six two-bedroom units.

“The apartments would fit the higher-end market needs, and be targeted toward recent grads, young professionals, empty-nesters,” Deutz said of the planned apartments.

She said they could also help fill gaps in local housing needs, as people look for single-family dwellings in Marshall.

According to a Marshall housing study, the city will see a demand for 108 new market-rate rental units and 140 single-family housing units over the next few years, she said.

Deutz said the next step for the development project would be for CBC Fischer Group to get a conditional use permit to build housing. They will be presenting their project to the Marshall Planning Commission today, she said.

The city of Marshall will also be considering a request to establish a Tax Increment Financing redevelopment district to help with part of the project costs. Deutz said a TIF redevelopment district can’t be used to construct buildings, but could help with costs of parking improvements and some street assessments.

Construction is expected to start this spring, Deutz said.

The next two phases of the project would include buildings that have a mix of apartments and commercial space. Phase 2 would be a building with 4,420 square feet of commercial space on the first floor, and a total of 22 apartment units on the two upper floors. That building would be located at the corner of First Street and Main Street.

Depending on how things go with rental demands, Phase 3 of the project could focus more on commercial space or apartments, Deutz said. The final building would be located at the corner of College Drive and Lyon Street.