Phase two of Easton's Simon Silk Mill renovation project won final approval from the city's planning commission Wednesday night.
The project encompasses the 19th-century mill complex along 13th Street, just north of Route 22.
Phase two focuses on a four-story building along N. 13th St.
Mayor Sal Panto said the first floor will be converted into arts-related commercial space, while the upper floors will be residential.
He said phase two will be completed sometime in 2016.
Panto said phase one of the project, which involves two buildings at the rear of the property, already is underway and should be completed late next year.
At least three more phases are planned for the project, which encompasses 340,000 square feet on 14 acres, according to the mayor.
He explained the property is owned by the Easton Redevelopment Authority and is being developed by V.M. Development Group of Flemington, N.J.
Panto said the first priority will be bricklaying to replace the front of the building, because some of the mortar is decaying. He added roadway and infrastructure work will begin in about 30 days.