The Salem News reports that the vacant Borders Books & Music building on Route 114, which was purchased by Brian Kelly in December, may become the new home of Kelly FIAT.

Kelly Automotive Group, which is based in Danvers, is in the midst of expansion plans to its current slate of dealerships along Route 114. In addition to the Borders building, Kelly also plans to reopen a dealership at the former North Shore Lincoln-Mercury at 1 Cross St., which is directly across from the Northshore Mall.

Kelly told the Salem News that he's exploring whether the existing buliding at 151 Andover St. -- Borders -- can be turned into a two-story dealership.

As for plans at Cross Street, they have been on hold for some time due to the economy and expensive site work -- Kelly purchased the property in 2010.

During that time, Kelly opened the first FIAT dealership in New England last March at 72 Andover St. in Danvers. He informed town officials at the time that the location was only temporary -- the dealership is actually named Kelly FIAT of Peabody.

Kelly told the Salem News he is also considering moving the Fiat dealership over to his Jeep-Chrysler lot on Route 1 in Lynnfield. He was before the Danvers Planning Board earlier this month for approval on a new Volkswagen dealership at the current Fiat site.

The Salem News reports that Kelly acquired the Borders building, which sits on 1.57 acres, for $1 from the bank, but is responsible for paying off more than a $5 million unpaid balance on the mortgage and is subject to certain leases and rents. The building is about 24,000 square feet.

The Peabody store closed its doors last year amid bankruptcy filings by the parent company Borders Group Inc.