An arts gallery will fill the vacant Kerr Drug space on the 100 block of Franklin Street in Chapel Hill, officials announced today.

The space will house a nonprofit group of 25 member artists dubbed Frank, with a lease agreement in place with building owner Michael Brader-Araje.

The artists hope to occupy the 3,400 square foot 109 E. Franklin Street building by early next year. The town along with the Downtown Partnership gave the green light on a $40,000 loan via its Small Art Business Loan Program to fund the project.

Barbara Rich will serve as the director of the gallery, which also plans to feature work from 50 regional and national artists.

The move had long been rumored, and is the latest effort to upgrade foott raffic and revitalize Franklin Street.