By JAMES FINK
Business First

Calling it his most ambitious and expensive project, Mark Croce has begun renovation work that will transform a nearly century-old downtown building into a boutique hotel.

A ground-breaking reception for the $19 million project was held Thursday. That day, demolition of the former Continental nightclub on Franklin Street was begun. The Continental neighbors the 97-year-old Curtiss Building at the corner of Huron and Franklin streets, which Croce is transforming into a 57-room hotel that will include an upscale restaurant, a spa and nearly 20,000 square feet of meeting and special event space.

The still-to-be named project is slated to open in late 2010.

"I think if you added up all my other projects, they wouldn't come close to what I'm spending on this," Croce said.

Croce has developed a number of downtown restaurants, including Darcy McGee's and the Buffalo Chop House, both of which are located a few blocks from the newest development.

The boutique hotel is the latest in a series of projects in recent years to take place along Huron Street between Main Street and Delaware Avenue. New Era Cap Co. Inc. moved its corporate headquarters to the former Federal Reserve building while Uniland Development Co. invested $85 million transforming the former Dulski Federal Building into the sleek Avant, which opened earlier this year. Additionally, the Hyatt Regency Buffalo just completed a $26 million top-to-bottom renovation.

"Our project ties the hotel corridor together," Croce said.

The project was designed by Young & Wright Architecture and Waterbourne Construction Advisors has been retained as the construction manager.

Also last week, a nearby tavern changed hands.

Longtime owner Peter Perrone sold The Mohawk Place, a venue for live music located on Mohawk Street near Eagle Street, to 123 Elmwood LLC, a group headed by businessman Scott Leary.

123 Elmwood LLC paid $175,000 for the building, according to documents filed Wednesday in the Erie County Clerk's Office. The property was listed for $260,000.

Broker Chris Malachowski of Hunt Real Estate Corp. said the new owners plan to install a new sound system and DJ booth and will also add video screens so patrons can watch live sporting events.