The City Council delayed action Monday on a building permit but approved a zoning change for a developer who wants to build a small retail and office park on land bounded by Ninth, 10th, Van Dorn and Hill streets.

The project appears headed for approval even though it has been opposed by neighbors concerned about traffic congestion and safety problems. The developer agreed to restrictions on commercial uses —no coin-operated car washes or auto body shops, for example — to try to satisfy neighbors.

B&J Partnership, the real estate arm of Speedway Motors, agreed to delay action on the building permit but not the zoning change while the city explores whether the area would be eligible for blight designation, which would open the door to tax increment financing.

TIF could be used for landscape and streetscape improvements, neighborhood signs and walkway improvements.

B&J didn’t request TIF, but is willing to delay building permits for a “reasonable amount of time,” said the company’s attorney, Mark Hunzeker.

“It really wasn’t necessarily our idea but we haven’t opposed the idea,” he said. “There’s no harm in looking at it.“

However, the three Republicans on the City Council questioned whether this is a suitable project for TIF, saying it doesn’t meet the state law “but for” test. The urban renewal tool is to be used for projects that, “but for” public assistance in the form of TIF, wouldn’t come to fruition.

Councilman Ken Svoboda said this project was moving forward without TIF. There was also concern that the process of doing a blight study, declaring the area blighted and coming up with a redevelopment agreement would slow the project down too much.

Councilwoman Robin Eschliman said it took years for the city’s legal department to get comfortable with using TIF, and if the city starts making a stretch to use it, “everybody around town is gonna start making that grab.”

But the Democrats on the council argued that it was worth pursuing because the money could be used to improve the quasi-entrance to the city. And they said the city’s law department could be trusted to determine whether it’s an acceptable move.

Svoboda’s motion to take TIF out of the equation failed by a vote of 3-4.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.