(KNZA)--The Villas of Beautiful Maples housing project in Hiawatha is officially over following a unanimous vote by the City Commission Monday night.

Commissioners voted 5-to-0 to reject an amended developer agreement, ending plans for the proposed housing development.

The decision came on the recommendation of City Administrator Brad Scott, who said the financial burden had grown beyond what he was comfortable with for the city's finances.

Commissioner Laura Tollefson said it was a shame the project had reached this point, given the community's need for moderate-income housing. Commissioner Dave Middendorf also expressed disappointment.

The commission had voted October 26th to move the project back to its original location west of Bruning Park. However, without a Reinvestment Housing Incentive District, the city would have been responsible for all infrastructure and development costs.

An engineer's estimate put those costs at nearly 948-thousand dollars, with the developer warning actual costs could be 10 to 15 percent higher.

Scott said borrowing the money could have meant annual payments of about 150-thousand dollars, significantly limiting the economic development sales tax funds available for other projects.

He also noted the engineer's estimate did not include additional expenses, such as construction observation, which could have driven the total cost even higher.