(KNZA)--The Hiawatha City Commission has rescinded an ordinance establishing a Reinvestment Housing Incentive District for the Villas of Beautiful Maples housing project.

The commission approved the move Tuesday morning on a 3-0 vote during a special meeting, allowing terms of the proposed district to be renegotiated. Commissioners Brian Shefferd and Tom Martin were absent.

The action comes after the Hiawatha School Board and Brown County Commission opposed the RHID, which was approved by the city commission July 27.

The Brown County Commission unanimously approved a resolution Monday saying the RHID would have an adverse effect on the county.

Commissioner Richard Tesoriero says constituents he heard from were overwhelmingly opposed, with about 40 calls received and only one in favor.

The Hiawatha School Board also voted overwhelmingly last week to protest the RHID.

One major concern was the proposed 25-year term.

The RHID is a financing tool that uses increased property tax revenue from new housing to help pay developers’ public infrastructure costs.