The development will have both commercial and residental space, says Coun. Rob Lantz. (Brendan Elliott/CBC)

A vacant lot on the corner of Grafton and Prince streets in Charlottetown could soon be home to a new four-storey condominium.

City council has approved a height variance and lot consolidation to allow for the project. Planning committee chair Coun. Rob Lantz said the building will provide more residential and commercial space close to the city's core.

"The first floor will be commercial," said Lantz.

"They'll be able to divide the main floor into separate areas for lease for commercial space, and then the top three floors will be residential."

The land was once occupied by a gas station, and two environmental assessment were done on the property. A layer of ash was found in the ground that will have to be removed.

Real estate agent Ian Walker is handling the sale for developer Linda Taylor. Walker said removing the ash will require the excavation of about five dump-truck loads of soil.

"They'll remove the soil, it will be brought to Wellington, and once [the Department of the] Environment is satisfied, then they'll continue to dig the hole and start construction," he said.

If all goes well, Walker expects ground will break on the project this spring.

Grafton Prince Proposal