The Madison City Council approved the construction of a mixed-use five-story building for 1864 Monroe St. and approved the use of $2.3 million in public funds for the project Tuesday night.

The Monroe Commons project includes 53 condos, a 12,000-square-foot grocery store and 129 parking spaces at the currently vacant space, which was once the home of Ken Kopp’s grocery store.

Council members and members of the Monroe community expressed the need for a grocery store in the neighborhood.

“A cemented neighborhood needs a school, a church and a grocery,” Ald. Judy Compton, District 16, said.

Ald. Brenda Konkel, District 2, expressed some financial concerns about the Monroe Commons project.

Her first concern was over the use of tax-incremental financing for the project. The project requires $2.3 million in TIF assistance, which will provide subsidy for the grocery store.

Konkel argued the developers had paid too much for the land, a violation of the city’s TIF assistance rules.

David Keller, the developer of the Monroe Commons project, said TIF assistance would be necessary to subsidize a grocery store. According to Keller, without the grocery, there would be no need for TIF assistance.

Mayor Dave Cieslewicz supported the use of TIF assistance for the project. Cieslewicz said the TIF assistance would bring a grocery to a community that needs one, add jobs to the city, add $20 million to the city’s tax base and be paid off in eight years.

Konkel also raised concerns over possibilities for affordable living at the condominiums. Ald. Zach Brandon, District 7, echoed these concerns.

“The condominium plan has cut out a lot of the original inclusionary zoning plans,” Brandon said.

Keller said the goals for the development include providing affordable housing and public parking. According to the Vilas Neighborhood Association, the development plan provides some provision for inclusionary zoning.

Konkel raised concerns about the city’s continual losses of $20,000 per year on public parking. She also questioned whether or not a grocery store could work in the Monroe Street area because the previous grocery had failed.

Ald. Ken Golden, District 10, who has worked with the Monroe community for four years on this project, addressed Konkel’s concerns over the success of a new grocery.

“There’s no way to guarantee a successful grocery store,” Golden said. “However, I think the community will do its best to support it.”

According to Carol Schroeder, president of the Monroe Street Merchants Association, Ken Kopp’s grocery store failed because he failed to keep hours that served the public.

“I am confident that the developer will not bring in a tenant who is likely to fail,” Schroeder said.

Schroeder said a grocery store would not only help residents but would also help small businesses on Monroe Street.

“Monroe Street offers citizens of all income levels alternatives to mall shopping,” Schroeder said. “Our retail mix will be best served with a food market.”