37 E. Granville St. in downtown Sunbury's town square sits ready for its new building to replace the previously demolished one. Credit: Jack Slemenda / Delaware Source

SUNBURY — An open lot occupies 37 E. Granville St. in Sunbury’s town square, the site where a small one-story blue building once stood.

A few small businesses, including owner Brad Hall’s Atlas Insurance and his wife Kelley Hall’s Patriot Mortgage, operated out of the building until its roof collapsed under the weight of heavy snow. Crews later demolished the structure in 2025.

Now, the Halls are one step closer to replacing it with a two-story mixed-use building that would include office space, another commercial tenant and two apartments.

Sunbury’s Planning and Zoning Commission approved the site’s major commercial plan Monday. The proposal now heads to Sunbury City Council, pending a variance related to the apartment square footage.

The plans call for a new two-story building that will reuse the existing foundation. Atlas Insurance and Patriot Mortgage would occupy the first-floor office space, while an additional commercial tenant would lease about 1,644 square feet on the second floor.

Architect Carly Maggio of 410 Studio said the building is designed to honor the Federal-style architecture surrounding Sunbury’s town square. She explained the focus of the project is the front of the building, as it faces the square.

“We have the two-story front porch, so you can see we’re really trying to get some scale on the front,” Maggio said.

Two two-bedroom apartments are also planned behind the commercial space, each with its own exterior entrance.

“The third tenant space and residential units will be delivered as shell spaces for future tenant build-out by the owner,” the plan states.

Kelley Hall attended Monday’s meeting with Maggio, seeking approval for the site plan and a conditional use for the two 875-square-foot apartments permitted in the city’s C3 zoning district.

Hall said one of the apartments will remain vacant for much of the year, serving as a place for her family to stay when they’re in town.

The city’s C3 zoning district does not require off-street parking for the project.

The commission approved the proposal after a brief discussion. During public comment, one resident raised concerns about the project, and Mayor Joe St. John said he wants city council to examine parking and flooding issues at the rear of the property before giving final approval.

Pictured are some renderings of what the 37 E. Granville St. rebuild could look like. Credit: The city of Sunbury & 410 Studio

Delaware's newsman. Ohio University alum. I go fishing and admire trucks when I take my wordsmith hat off. Got a tip? Send me an email at jack@delawaresource.com.