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The Madison Board of Public Works unanimously approved a project Wednesday to reconstruct the 200 block of Gilman Street, pleasing State Street business owners and angering several area landlords.

The project includes repairs to utilities and replacement of pavement, curbs, gutter, sidewalks and sanitary sewers, along with the installation of street lighting similar to State Street’s lighting.

The construction, which heads to the City Council for final approval Feb. 24, will be further examined by city officials, business and landowners to decide when would be an appropriate time to begin construction.

Several State Street business owners were concerned with the number of projects happening in the area. With the reconstruction of Gorham and Broom streets scheduled to begin this March, also fixing Gilman Street would block more parking locations near State Street and could negatively affect downtown businesses.

“We appreciate that the board listened to the concerns of the business owners and property owners in the area, and it looks like there is a window of opportunity to work with staff on the construction schedule,” said Mary Carbine, executive director of Madison’s Central Business Improvement District.

However, landlords present at the Wednesday meeting were unsatisfied with the board’s decision because they would be required to pay for the full cost of the new streetlights, which most owners see as unnecessary.

“They’re concerned about the business owner’s pocket but not the land owner’s pocket,” said Rebecca Anderson, who owns the Eleanor apartment building at 405 N. Frances St. and property on the 400 block of Gilman Street.

Anderson, who would be required to pay about $9,000 for the lighting portion of the project, was one of several landlords present at the Wednesday hearing. Most said there is no need for most of the lights because the 200 block of Gilman Street is not heavily trafficked and has no safety problems.

Ald. Mike Verveer, whose District 4 includes the area in question, disagrees.

“I do feel strongly that these pedestrian lighting improvements will make a big difference,” Verveer said during the public hearing portion of the meeting. “I do think it makes a difference when it comes to public safety, I think we need to do everything we can to improve the lighting of that area.”

Landlords would be allowed 15 years to repay their portion of the project costs and would be charged 5 percent interest per year on the unpaid balance.

Reconstructing the 200 block of Gilman Street is included in Madison’s 2009 budget and would cost the city $297,255.