CHAMPAIGN -- The city is considering a tax-increment financing incentive for Community Property Management's efforts to remediate a site near the corner of Kenwood Road and Springfield Avenue in preparation for the development of new apartments.

The Champaign City Council discussed a proposed development agreement at its meeting Tuesday night and directed staff to draft the official document.

Economic Development Manager T.J. Blakeman estimated the matter will return to council for an approval vote in about a month.

Under the proposed terms, the city would reimburse the company using 100 percent of the increment the project generates for the Springfield and Mattis TIF district "in an amount not to exceed $6.6 million or a term of 10 years, whichever occurs first," said Associate Planner Daniel Saphiere.

A one-year extension is available under certain conditions.

Eligible expenses for reimbursement would include demolition, environmental remediation and utility work for the site at 506 Kenwood Road.

Community Property Management plans to build three-story apartment buildings with approximately 230 one-and two-bedroom "market-rate units" at the site, which is home to the former C.S. Johnson factory, Saphiere said.

The company has previously used the property for storage purposes.

"The former factory is a 'brownfield site,'" Saphiere wrote in a report to council. "Wall failures, broken windows and cracked pavement have made it unsafe and visually deteriorated. Obsolete industrial infrastructure, large utility easements and soil contamination complicate redevelopment."

He noted that the site is one block south of the Champaign Park Apartments, where nearly 500 "lower-rent" units have been condemned.

"We're excited about the prospect of adding these new apartments to the area, which will also include significant amenity space for residents," Nathan Shoemaker, CEO of Community Property Management, told The News-Gazette's Kathy Reiser.

"We anticipate being able to share more detailed plans soon."