URBANA, IL (Chambana Today) — The Urbana City Council is reviewing a controversial housing project on West Main Street and considering a new ethical investments policy.

City officials are moving forward with plans for a four-story apartment building just north of Boneyard Creek. Staff noted that the development’s location presents architectural challenges but could also help expand a pedestrian pathway along the creek.

The proposed 32-unit building would replace two residential structures and utilize two currently vacant lots, though the project would result in the loss of six to 14 existing housing units. Residents voiced both support and opposition at a recent Committee of the Whole meeting. Some expressed concerns that the new building would not fit with the character of the neighborhood, citing large single-family homes in the surrounding area. Others emphasized the need for additional housing close to downtown to meet rising demand and help reduce rents over time.

City council members were divided on the project. One member suggested alternative sites for development closer to downtown, while others emphasized the necessity of expanding housing options for Urbana’s next generation. The council voted 3-to-2 to advance the proposal, with the mayor casting a tie-breaking vote. The project is expected to return for a final vote in June.