NORFOLK, Neb. -- A potential development near Johnson Park and downtown Norfolk aims to connect the two parts of the city.

Mark Otto and Mudd LLC announced their intentions via press release on Monday and was confirmed by the city of Norfolk, about their intentions to buy 105 E Norfolk Ave.

Their vision, according to their press release, is a $32 million investment that includes connecting Johnson Park with downtown Norfolk through a pedestrian path adorned with shops and restaurants.

Mark Otto and Mudd LLC expect the project will bring in 130 new housing units which will compete with major cities in retaining young talent in the area.

"This creates a rising tide which raises all ships," Mark Otto said in the press release. "Not only will this help draw more people downtown, it will draw more people to Norfolk."

However, to implement their plan Otto and Mudd LLC said they must use Tax Increment Financing (TIF) and have an extremely blighted deceleration for the area.

On Monday, the city of Norfolk took up both of those issues during its city council meeting.

The first resolution was a "Workforce Housing Incentive Plan" to allow TIF for new construction activities for workforce housing, which was approved in a unanimous vote.

This would allow TIF to be used for Otto and Mudd LLC's project. 

The second resolution, approving an Extremely Blighted Determination Study, was not so unanimous.

If approved the study would allow the project's pay period for TIF to last 20 years rather than the normal 15.

Jim McKenzie, a Norfolk resident and mayoral candidate, pushed back against the study's approval, arguing a project that doesn't use TIF should be used instead.

McKenzie expressed his concerns that the city was financing too many projects that used TIF as a funding source.

"I'd like to see this accomplished without a significant TIF incentive," McKenzie said. "Is there no way that we can have a development there that doesn't take away the potential for future property taxes on a development that would happen there for 20 years?"

The city pushed back against McKenzie's arguments stating that the property had sat ready for development for 14 years, with very little interest from developers.

Councilman Shane Clausen argued that if they passed on the opportunity another wouldn't present itself for decades. 

"Nothing's happened in 14 years, so what's to say if you don't approve this project it's sitting there for another 20 years," Clausen said. "There's only been, in 14 years, there's only been three, I think three, maybe four, viable developers that tried to get through this process and get something going."

The city voted 6-1 in favor to submit the study, with councilman Justin Webb voting in opposition. 

While both resolutions were passed, the project still has some hoops to jump through before construction can begin.

Otto and Mudd LLC will need to meet with the city council later this year and apply for TIF.