GOSHEN — A central Indiana company hopes to build a $40 million apartment project near Black Squirrel Golf Club.

The Goshen Redevelopment Commission voted 3-2 on Tuesday to enter a development agreement with Indianapolis-based Kosene & Kosene. The company is eyeing a 13-acre plot at the northeast corner of Plymouth Avenue and Green Road for a 175- to 200-unit apartment complex.

Company representatives described the one- to three-bedroom units as being priced at a point that would fill a hole in the housing market. They said wage data shows that rents in the range of $1,250 to $1,900 would appeal to unmet demand in the city.

The proposal includes amenities such as a pool, dog park and fitness center. Their expected investment is close to $40 million, the RDC heard.

The undeveloped farmland is not part of the city but would be voluntarily annexed, according to information from Redevelopment Director Becky Hutsell. She said the company has a purchase agreement in place but wants to see support from the city before moving ahead.

“This is very appealing land to developers,” she said. “I believe two or three years ago, another group had approached us and the city had facilitated some meetings with the neighbors. They heard the feedback and opted out.”

Kosene & Kosene is asking that the land be established as a project-specific tax increment finance district, similar to other large housing projects in the works in Goshen. A portion of TIF revenue would be used to repay an economic development revenue bond used for financing infrastructure construction at the outset.

Kosene & Kosene may also apply for a share of the $45 million in READI funds awarded to the region, according to Hutsell.

The company expects a two-year completion time after entitlements are secured.

The RDC voted after hearing from a number of neighbors who are opposed to the project. They pointed to water issues, how close it would be to their homes and said it’s not in a part of the city that needs to be developed.

Board member Brett Weddell said he has a hard time picturing a three-story complex next to the houses in the area. He later voted against the development agreement.

Resident Tim Miller told the board the city has done a good job of addressing its housing needs with a series of ongoing projects, but he urged them to focus on what’s underway now before starting something new.

“Maybe it’s time to slow down and see if we can fill this housing before we open any new vacancies,” he said.

There are a number of details to be worked out before the project can move forward, such as annexation, rezoning and commitments from the city, as well as traffic and storm water studies, according to Hutsell. She said the vote on a development agreement would go next to city council on June 10.

“There’s a long way to go to get to a final plan from here,” she said. “This is just a starting point and it’s something to consider.”