The Denver City Council approved $5 million in tax financing Tuesday for a new Target store that officials hope will spark the redevelopment of the former Tamarac Square Mall off Hampden Avenue.

The council vote was 12-1, with Councilwoman Susan Shepherd casting the lone vote against the plan that over the past month had stirred controversy. Some neighbors were concerned the city is giving too much away to the national retailer.

Councilwoman Peggy Lehmann, who represents the district where the store will be built, said she believes the development will

positively impact the area.

“It is going to be the second Target store in the city and county of Denver, and it’s a 10-year deal that (some officials) believe will be repaid in five years,” she said. “Target being there is much better for my district than an empty space.”

In the tax-increment financing arrangement, $5 million in sales-tax revenues generated by Target over 10 years will be used to finance part of the construction of the site — such as connections from the shopping center to Hampden, building a new stormwater drain and reconstructing the parking lot.

The deal expires after 10 years or as soon as $5 million in revenue is generated.

Shepherd, however, disagreed with a study that determined the area was blighted — a requirement for the Denver Urban Renewal Authority to assist in the redevelopment.

“In no way is this area blighted,” Shepherd said.

Some neighbors who spoke during a public comment session before the council voted said they also didn’t believe the area was blighted.

“Do you believe unless you put a big-box store there that it will sit empty for 10 years?” asked Roger Fahlberg.

Bob Swedberg said he is concerned about the increase in traffic that he knows will occur.

“That will significantly impact our neighborhood in a negative way,” he said. “DURA, by designating it as blighted, has already harmed our neighborhood.”

Councilwoman Debbie Ortega and Robin Kniech, who voted for the bill, were concerned about the number of retail jobs that will be created that won’t pay a living wage.

Target officials said 25 to 50 of the 150 to 200 jobs will be supervisory or managerial jobs.

Kniech said cashiers and salespeople in the store likely would be earning half the median income in Denver, a difficult wage in a city where affordable housing is increasingly hard to find.

She said she won’t be supporting more bills like this that are “bringing jobs for people who are going to struggle to live in our city.”

Councilmen Charlie Brown and Chris Herndon disagreed, saying that bringing a big retailer to Denver is a good move and that retail work is a respectable way to make a living.

Jeremy P. Meyer: 303-954-1367 or jpmeyer@denverpost.com