The group approved the project's budget Friday, giving the nod for $96 million in future property-tax revenues to fund extensive infrastructure upgrades on the 57-acre property.

"This is a great step forward on a public-private partnership that will benefit the entire state," said Kris Longson, vice president of development for Cottonwood Mall owner General Growth Properties.

The $550 million transformation - from an outmoded enclosed mall to what is being touted as an upscale mixed-use neighborhood - will receive 75 percent of new property-tax dollars generated by the project over 20 years.

The city also agreed to contribute 75 percent of its point-of-sale tax revenues from the project during the same period.

If enough revenue flows to meet the approved budget in less than 20 years, those commitments end.

Of the eight members on the committee - two from Salt Lake County, two from Holladay, two from the Granite School District, one from the smaller taxing entities and one representing the State Office of Education - seven voted in favor of the budget.

Larry Newton, the education department's finance director, abstained.

"My board membership and executive staff instructed me to abstain - unless my abstaining would block the project," Newton said.

Holladay City officials agreed with a Salt Lake County request to provide 100 units of affordable housing somewhere within the city within 10 years. The units could either be new construction or rehabilitated structures.

Earlier this week, city officials and General Growth executives agreed to hold an annual fundraiser at the redeveloped site to benefit the Granite School District.

The city pledged to match any proceeds raised that way up to $25,000 annually.

cmckitrick@sltrib.com