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Construction is scheduled to get started next month on the redevelopment of the former Spaghetti Warehouse and Sensationz nightclub building at 141 Elm St.

The $7 million project, to be known as The Planing Mill, will consist of about 22 market-rate residential apartments and 10,000 square feet of office space in the 43,500-square-foot, three-story brick building.

The apartments include three two-level units with interior staircases, 12 regular two-bedroom units and the rest one-bedroom apartments.

The project is being done by TM Montante, the company that last week won the rights to develop the former Millard Fillmore Hospital at Gates Circle.

Environmental remediation of the site is already underway, and construction will continue through the winter, said firm President Tim Vaeth. He said most of the building will stay as it is, with the exception of window replacements. The first residential apartments should be ready by late spring, although the office space may be available sooner.

The project will benefit from historic tax credits because the building dates to 1878. It was owned by E.M. Hager and Sons Co., a lumber mill operator. The mill operated six 10-hour days each week, using about 100 railroad carloads of lumber per year, and was one of the prime construction contractors for the 1901 Pan American Exposition in Buffalo. It was added to the state Register of Historic Places in March.

More recently, it was targeted to be redeveloped into 32 upscale apartments by Kevin Townsell in 2006 and then again by Greenleaf & Co.’s Jim Swiezy and Paul J. Kolkmeyer, who had a contract to buy it and invest $6 million to $7 million to turn it into 38 to 40 loft apartments.

Vaeth said Montante will also seek “gold” LEED certification for the building as environmentally friendly. Montante, which also owns a solar installation business, plans to mount solar panels either on the roof or in the parking lot.

email: jepstein@buffnews.com