The Cottage City historic district commission this week took a first look at a plan to demolish and rebuild a dilapidated building that abuts the landmark Flying Horses Carousel.

Oak Bluffs businessman Joseph Moujabber appeared before the Cottage City historic district commission Wednesday night with preliminary plans for 10 Oak Bluffs avenue that would include a two-story historically accurate commercial building with a second-floor apartment.

The site, a tiny .04-acre lot that includes a vacant building with several small additions that once housed a variety store, abuts the Flying Horses, which is listed on the National Register of Historic Places.

Mr. Moujabber, a part owner of Nancy’s Restaurant on the Oak Bluffs harbor, bought the property in December 2017 for $700,000, town assessor records show. The previous owner is Jane Peters of Marlborough.

Buildings on the site are currently unused. The town’s assessed value of the lot and the buildings is $702,500.

“The good news is, there’s not a single person in Oak Bluffs or maybe anywhere else that doesn’t want to see this building come back to life,” said historic district commission chairman Phil Regan. “That’s also the bad news. Because it’s going to be under a microscope.”

Designer Ethan McMorrow of Nantucket briefed the commissioners on preliminary drawings of the planned new building.

Some commissioners expressed concern about how the proposed new building would affect views of the Flying Horses building, and offered suggestions on the roof line and entrances. They also expressed a desire to keep the new design true to the long history of buildings on the lot.

“I see such a great opportunity to have that structure either restored or rebuilt,” Mr. Regan said. “It’s just such a critical block. You can drive all the way around it. It’s what you see when you come into town via boat. There’s just so much activity at that point.”

The commission voted unanimously to call a public hearing for the application and notify abutters.

The hearing will be held on Dec. 12 at 4:45 p.m. at the Oak Bluffs Library.