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The five-story project will be located within an urban renewal area downtown. Projects within urban renewal areas are eligible for tax-increment financing through the city.
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Fort Collins-based Brinkman Partners will develop the property, assuming the council approves it.
The project will be constructed across 6th Street from Lincoln Place, a $9 million multi-family project built by Brinkman earlier this year.
If the project is approved, groundbreaking will occur near the end of March 2013.