The Birmingham City Council on Tuesday approved financial incentives totaling more than $2.5 million for a forthcoming mixed-use development in the Lakeview District.

About $1.5 million of those incentives will come in the form of a Birmingham Business Development Loan to the developer of Lakeview Green. The term of the loan will be 24 months at an interest rate of 4.17 percent per year.

The project will also receive an abatement of future sales tax revenue of up to $1.09 million, payable in annual installments not to exceed the lesser of $218,000 or 40 percent of the sales tax revenue generated to the city by the development's tenants.

The city council passed the items 7-0. Councilors Steven Hoyt and Sheila Tyson were absent from Tuesday's meeting.

City Councilor John Hilliard spoke in favor of the project. "I realize that this project will bring a lot of economic and tax revenue to the city of Birmingham," he said.

He said he hopes the sales tax generated from the development will be invested in all of the city's 99 neighborhoods.

KRE Development Holdings - the same developer behind the Iron City Lofts project - announced in July 2017 that the project at 2901 4th Ave. S. would include a five-story building with 30 condos, 73 apartments, and 38,000 square feet of retail and restaurant space.

The apartments will be one- and two-bedroom units and the condos will be two- and three-bedrooms, with prices starting in the $300,000s.

Lakeview Green will also include a large public green space with koi pond, river and waterfalls.

The developer has already demolished the former Davis School at the site to make way for the development.

Wayne Krouse, a representative with KRE, said construction could begin roughly 45 days after council approval.

He said the construction phase of the project will create 250 jobs. When fully leased the development, would create 200 jobs, he said.

On Tuesday, he said the development would include five to six restaurants and other retail.

Krouse said projections show that the development will generate $326,000 in sales tax revenue for the city annually for the first five years. After that, the numbers are projected to rise to $550,000.