A $190 commercial project would get future taxes worth $70 million, and the surrounding neighborhood was to get $15 million for improvements.
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A final vote on the legislation that includes tax support and the potential use of eminent domain is expected later this month.
The trolley will offer free service on Saturday as part of the national Small Business Saturday event.
Rides on the full 2.2-mile route will begin at noon Friday after the trolley district submits a $300,000 bond to University City and finishes temporary fixes to deal with a safety issue involving an electric pole.
On first day of service, trolley cars didn't enter University City, disappointing some would-be passengers.
William "Bill" Hinson has been interim chief since January.
The city will begin a one-year trial of a $2,500 cap for the its share of each project, to enable balanced program spending.
The choice of preferred developer went to U. City L.L.C. — an affiliate of Novus Cos. The council's vote authorizes the city manager to negotiate a redevelopment agreement.
The city's contract with the developer is making it difficult for University City to reclaim a key corner it owned on Olive Boulevard.