NORFOLK, Neb. -- The city of Norfolk approved an extremely blighted determination for 105 E Norfolk Ave. on Monday.

The location is being eyed for a potential redevelopment which would bring new housing units and retail locations to the city.

However, for construction to take place, the developer, Mark Otto, said they need to use Tax Increment Financing (TIF) for up to 20 years, which would only be possible if the location was determined to be extremely blighted.

While Monday's decision was only over this designation and not about funding, most of Monday's conversation focused on the project's potential use of TIF.

Norfolk resident and Mayoral Candidate Jim McKenzie spoke against the designation urging council members to not move forward with it.

McKenzie argued using TIF would hurt taxpayers and urged the area be used for development not requiring TIF, a sentiment echoed by others on Monday.

"In a TIF-ed development, the city of Norfolk will have to provide, police, fire, EMT, building, code enforcement, administration, streets, engineering, and all other city services to the businesses and residents of the development for 20 years with zero new property tax support," McKenzie said. "That will most likely mean a property tax increase on the rest of us to make up for the tax revenue that will go to the property owner to pay for those city services." 

Also speaking out against the determination were some of the current tenants inside 105 East Norfolk Avenue.

They expressed frustration and anger over the loss of their business locations should Mark Otto and Mudd LLC close on the property.

"I have had a lot of concerns about how it has moved along and the quickness of it and not being informed of what is going on," Branch manager at Adventure Staffing Jamie Meaux said. "There are many places (to relocate to) that are available, but they are not affordable and that is a huge concern that I have for my business." 

Still, others spoke favorably for the $32 million project, citing it as a once-in-a-lifetime opportunity for the city to grow and expand.

"Your approval tonight will allow redevelopment of First Norfolk Avenue to move forward," Norfolk resident and mayoral candidate Scott Williams said. "I really think this is a once-in-a-lifetime opportunity...that will alter, positively, downtown Norfolk forever. Approval also signals to developers...that Norfolk is open to business."

The council voted 6-2 in favor of the extremely blighted determination, with council members Justin Snorton and Justin Webb voting in opposition.

While the determination was approved, the TIF for the project has not.