(KNZA)--The Hiawatha City Commission voted four-to-one Monday night to move forward with reapplying for a moderate-income housing grant for a proposed duplex development using existing lots in town.

Commissioner Dave Middendorf cast the lone dissenting vote.

Two options were discussed after the commission voted last month to rescind the project’s Reinvestment Housing Incentive District following opposition from the Brown County Commission and Hiawatha School Board.

The other option would keep the project at its original site west of Bruning Park and use economic development sales tax proceeds to pay for infrastructure costs estimated at about 886-thousand dollars.

Commissioner Brian Shefferd says moving the project to existing lots in town could save taxpayers about one million dollars because utilities are already in place.

Shefferd says the plan would use two lots in Aztec Court owned by the Hiawatha Foundation for Economic Development, along with one or two additional lots that would be purchased.

City Administrator Brad Scott says there are still several unknown costs and zoning issues that must be addressed with the option.

During public comment, Hiawatha resident and former city commissioner Bob Freese spoke in favor of keeping the project at the original site. Freese noted the city already owns the property, state approval is in place, and the site is already zoned for the development.