HERMANN — Final approval was given Monday night by the Hermann Board of Aldermen for the use of up to $4 million in industrial development bonds to finance a multi-family housing project on the former site of a mobile home park on West 6th Street.

ELS of Hermann, LLC., is the developer of the apartment project that will be located within a couple blocks from Hermann Elementary School. Community leaders see the project as a major step in the effort to increase the community’s housing stock as a way to accommodate younger families with school-age children and provide housing for some of the workers expected to fill the jobs created at the megasite industrial development project in Montgomery County.

The cost of developing the apartment project is estimated to be $3.9 million.

Use of the Industrial Development Authority bonds involves a 10-year property tax abatement feature. Under the plan, the project will be owned by the city of Hermann, which is not subject to property tax. However, it will be making a Payment In Lieu of Taxes (PILOT) to the various political subdivisions that would benefit from the apartment project. According to documents outlining the program, that PILOT will amount to half of what the property tax would be during a 10-year period beginning next year.

The exception to the 50-percent payment is the Hermann Area Ambulance District, which will receive the full amount of the property tax it would normally receive.

Meanwhile, during Monday night’s first regular session of the month, the aldermen approved several more-routine measures:

• The hiring of Devon Sutterfield as a police officer.

• Approval of the annual write-offs as requested by the city collector.

• Approval of Conditional Use Permit renewals for Graystone Guesthouse at 202 West 6th Street and a guesthouse owned by Huntline Properties, LLC., at 309 West 6th Street and for outdoor liquor consumption at Hermann 1837 located at 403 Market Street.

• Approval of a Festival Event Application by The Red Buffalo Art for live painting at 219 East 1st Street on Oktoberfest weekends.

• Approval of a Caterer’s Permit for Lionheart Whiskey Company for the Chili Cookoff set for the Rotunda in Upper City Park on Nov. 2.