The Knox County Land Bank has come up with a new use for an old newspaper building in downtown Mount Vernon.

The Land Bank board is proposing to develop the former Mount Vernon News building into offices, retail space and condominiums, said Land Bank Vice President Sam Filkins.

The board plans to apply for a $2 million state grant for the project, which will likely cost a total of $6 million, he said.

"The lower level space will be potentially for a light manufacturer or community space," he said. "The main level will be divided into four retail/office spaces and the upper level would be 12 condos."

Having more residential housing would help downtown restaurants and merchants, Filkins said.

"We see this as a key part of creating a vibrant downtown," he said. "Having not only great dining and retail options but also people who live right there. It really is a catalytic project for downtown."

The newspaper building was constructed in the 1930s and expanded in the 1980s, Filkins said. The Land Bank purchased it from the current owners of the Mount Vernon News.

"The building is very solid, which helps to make this project a reality," Filkins said. "The basement level was where the printing press and all of the production of the newspaper was. The upstairs was office space and large bullpen areas. The one drawback is there are no windows currently in the building."

Part of the project will be to align the building's appearance with downtown architecture. Renovations in the 1980s covered the structure's original Art Deco elements.

"Unfortunately, there is nothing left of that to save," Filkins said. "So it will look more like other buildings downtown with the cornice around the top. It will match the architecture of downtown a little closer."

Filkins cautioned that the project will only work "if everything falls into line the way it's supposed to," including the state grant.

"While we are hoping for this, we do have back up plans," he said. "Not getting a $2 million grant would definitely cause this project to change."