There is a small motel in Youngstown (not bad) http://www.outdoorsniagara.com/youngstownmotel.htm
Like previously stated, camping at 4 mile creek is another great option, the Fort Niagara launch is only 5 mins from there as well.
If you want to fish the red can, you are best fishing right out of Youngstown. You can't go wrong fishing youngstown to Olcott, but I grew up fishing off the red can so i'm biased