EL PASO, Texas (KTSM) -- El Paso City Council representatives unanimously voted on Tuesday, Nov. 19 in favor of a development agreement that will result in the revitalization of one of El Paso’s most historic buildings -- "The Popular" department store building in Downtown.  Representatives voted in favor of a Chapter 380 agreement that they say will spur the development of 99 multifamily residential units. According to the City’s Economic Development Department, 15% of those units will be priced as moderately affordable, meaning applicants will need to make at least 80% of the area’s average income. The proposed development plan also entails a 65-space parking garage and has the ground floor reserved for retail space.  Part of the agreement required the developer to invest a minimum of $35 million. In return, the City would give an incentive package that totals $6.72 million. The two major components of that package include a TIRZ No. 5 property tax rebate, along with an impact fund development note. Overall, this is 16% of the anticipated project costs, said Karina Brasgalla, interim director of Economic Development. “This project is one of the highly identified priorities in our strategic plan, in our housing plan inventory from 2019. It is something that has been absolutely critical when we are talking about the future growth of Downtown. We've made huge in-roads in our convention center and our hotel programs in bringing office space and bringing retail and looking at that recovery. The next step is residents, and you need residential growth in an area to drive retail and commercial activity,” Brasgalla said.  The City will be working with developer Robert Palacios. Palacios is an El Paso native who said he left a national real estate firm to pursue this project on his own.  “I have a great love for the historical architecture of El Paso, and a great love for Downtown El Paso. I believe there's great potential in this building, great potential in Downtown El Paso and it's a true honor to be able to work on a project like this and play a part in the transformation of the urban core of El Paso,” Palacios said.  Both Brasgalla and Palacios said this project is still in its early stages but will be moving forward to get to the construction phase.  “There have been some preliminary plans that have been created already, buy-in to a wonderful local architecture firm, and we're going to continue to work with them to refine these architectural drawings, which will then allow us to submit for, the part two of the federal and state historic tax credit applications, which will be another vital source of funding to this project,” Palacios said.  Brasgalla said the city's Economic Development Department has asked the city for a 36-month construction timeline in order to obtain a certificate of occupancy. She said the tentative opening for the complex will be around 2027 to 2028.  The project site, at 301 E. San Antonio Ave., was once home to the Popular Dry Goods Co. and the building was built in 1914. Designed by Trost & Trost, it is on the National Historic Register and is therefore eligible for historic tax credits. The last time the building was operating was in 2022, when it was home to the discount clothing store Fallas Paredes.