(KNZA)--The future of a planned housing development in Hiawatha is unclear following action taken by the Hiawatha School Board Wednesday evening.

The board voted to protest a Reinvestment Housing Incentive District for the Villas of Beautiful Maples development west of Bruning Park as presented, effective August 25, to allow time for negotiations between the city, Brown County and the school district.

Hiawatha City Administrator Brad Scott and the project developers, Dave Anderson and Michael Webb, were present to discuss the RHID and answer questions.

In making the motion, board member Ian Schuetz said he wants to see the project move forward but not under present development terms. He said he can support a ten-year RHID but not the 25 year term proposed. Board member Phil Roberts agreed with Schuetz that the housing is needed but not under the current terms.

The RHID is a local economic development financing tool used to assist developers with public infrastructure costs for housing projects.

Anderson said a ten-year period would not work and emphasized the project does not affect property taxes, which has been a concern of some local residents.

Webb said it gives the option to bring back a revised development plan.

The Hiawatha City Commission approved an ordinance at their July 27th meeting establishing a housing incentive district for the project. The school board’s vote to protest the district means the city would be required to repeal the ordinance.