In a split decision, the Salt Lake City Council voted Tuesday evening to loan $850,000 to a developer to build 125 affordable housing units downtown.

Although hailed by some council members as a plus for downtown workers, Councilwoman Nancy Saxton said the rental project was wrong for downtown.

“There is no shortage in this area of low-income housing,” she said of the Providence Place rental project planned for 309 E. 100 South.

“We need mixed incomes in this area. We should put buyable housing in this section of the city.”

The decision authorized a 30-year loan from the Salt Lake City Housing Trust fund, amortized over 40 years with a balloon payment after 30 years.

Saxton said developer Wasatch Advantage Group was putting up none of its own money toward the apartment complex.

“Why should we fund profits for this developer when we have so little money for housing?” she asked.

But Councilman Dave Buhler disagreed with Saxton, saying it would help build the central city neighborhood.

“The fact that this is an upgrade to the neighborhood makes it a good project,” he said. “This is going to improve the area. This is an appropriate use of the money.”

There is a dearth of affordable housing near downtown, said Councilman Eric Jergensen.

“The ability to have low-income housing in Capitol Hill is not there,” he said. “There will be a need for affordable housing near our downtown area. This will benefit us in the long run.”

But Councilman Van Turner told his colleagues that the body should look to the future when downtown is “more upscale.”

“Our downtown is totally going to change. I think we can do better in this neighborhood.”

Jill Remington Love joined Turner and Saxton in voting against the loan. Voting for it were Buhler, Jergensen, Carlton Christensen and Soren Simonsen.

csmart@sltrib.com