Norwich — The ongoing transformation of the giant Ponemah Mill complex in Taftville will continue with approval of the site plan and special permit Thursday night by the Commission on the City Plan.

The commission voted unanimously to approve the $40 million plan by New Jersey developer OneKey Inc. to create 146 apartments and a 3,879-square-foot restaurant or café following an online public hearing on the project Thursday. The vacant complex at 555 and 575 Norwich Ave. and Route 97 formerly housed Central Sports and Amazing Furniture.

OneKey created the ownership name 555 & 575 South Mill LLC.

The long, narrow two-story building is referred to as the south mill because it represents a continuation of OneKey’s project to renovate the historical cotton mill complex into a combination of market rate and affordable housing apartments and amenities. The much larger mill has 237 apartments, plus 77 recently completed units in the rear wing that juts toward the Shetucket River.

The south mill will have 125 one-bedroom units and 21 two-bedroom units.

The building windows will be restored to their historical appearance and at the rear, where the building is only three stories, lower-level windows covered by built-up grounds will be uncovered and restored, project engineer Brandon Handfield told the commission.

The south mill complex will have indoor and outdoor recreational amenities, including a cinema and spa, and a river walk trail and dog walk along the Shetucket, with a commanding view of the active hydropower dam to the north. The city Inland Wetlands, Watercourses and Conservation Commission approved the plans on Jan. 6. The state awarded a $797,000 brownfields cleanup grant last summer to start the project.

The project calls for demolishing a small connector between the south mill and the next building in the mill complex at 539 Norwich Ave., not owned by the developers, to accommodate a driveway to the rear of the mill. Paul Breglio, managing member of NPB Assets CT, owner of 539 Norwich Ave., submitted a letter consenting to the proposed demolition.

Handfield told the commission the property has three designated flood hazard areas, with only a small triangular area at the northeast corner of the property in the 100-year flood plain. A floodway area cuts across the rear parking lot, he said.

Handfield said the mill renovations would be overseen by the state Historic Preservation Office. There is no tenant lined up for the proposed restaurant, planned for the two-story front building, called Ponemah Landing. That building had housed the Amazing Furniture store. An outdoor dining area and potential outdoor concert area are planned.

The project will share the main entrance to the mill complex used for the north mill. A traffic study submitted with the project reported the new development would nave “no adverse impacts” on the intersection, Handfield said.

Commission member P. Michael Lahan questioned the potential traffic impact on Route 97 and the Route 169 intersection directly across from the entrance. Handfield said the state Department of Transportation will review the plan and has authority over the traffic plan.

Landscaping will complement the plantings at the north mill, including flowering trees. Lighting also will be similar to the lights at the north mill. Conservation native grasses and shrubs will line the riverwalk.

“We look forward to you finding a great restaurant,” Lahan said.

c.bessette@theday.com