CARRBORO - A rezoning decision has cleared the way for the 110,000-square-foot Shelton Station project after the developer agreed to build it so that some residential space could be converted to commercial in the future.

The Board of Aldermen's 4-3 decision to rezone three parcels on North Greensboro Street to general business emphasized a divide over how the project on the edge of downtown could affect pedestrians, traffic, and the town's character. A fourth lot in the 2.49-acre development is already zoned for business.

Aldermen Dan Coleman, Jacquie Gist and Michelle Johnson opposed the rezoning, saying Shelton Station wouldn't fit with the surrounding neighborhood.

"I just think without an upfront public process that engages the community, it's just too radical a change," Coleman said.

Initial plans show two buildings - a 24,000-square-foot, two-story office and retail building fronting the street, and a 96-apartment, three-story building with a ground-level parking garage at the rear.

N.C. Department of Transportation officials said turn lanes won't be necessary, but the Greensboro-Shelton Street intersection could get pedestrian improvements, such as a raised crosswalk, median or more lighting.

Gist and Johnson said there needs to be a serious discussion about what downtown and neighborhoods should look like.

Johnson also cited a report from the Economic and Community Development office that estimates Shelton Station would result in a $13,583 net annual loss to the town. The roughly $15 million project is expected to contribute $131,450 in annual property and sales taxes, but delivering services to its 154 estimated occupants would cost the town $145,033. The report notes Shelton Station would generate about 70 jobs.

Mayor Mark Chilton said the analysis does not take into consideration the economic benefits new residents will bring to restaurants and other businesses. The development also is "not likely to put many kids into the school system, and that means it will help reduce our county tax bills, which amount to about two-thirds of all property taxes that Carrboro residents pay," he said.

Many speakers Tuesday asked whether the project was right, even after three neighborhood meetings and a revised plan that Belmont-Sayre LLC developer Ken Reiter said addresses earlier feedback.

Real estate agent Jackie Tanner said it would change the "essence of what attracts people to this town" without adding affordable family housing.

"You have tons and tons of two-bedroom units within walking distance of downtown Carrboro now. ... I wish I had a dollar for every client I have that I have to take to Durham and elsewhere because they cannot find affordable housing here to raise a family," she said.

Others argued in favor of the project's potential to contribute to the commercial tax base and bring more residents and jobs.

"This strikes a good balance of providing mixed-use development in our downtown core," David Arneson said. "This thing is far better, far more green and sustainable than other options we have for suburban types of development."

Chilton said it was a difficult decision, but one that must be in the town's best interest.

"I think there is a lot about the character of the development that has yet to be determined, and this board is going to be in the position of making a lot of those calls," he said. "I value the character of the neighborhood that I live in, the character of the downtown overall, but I look at this site, and I don't see this site as surrounded by old mill houses."

Aldermen Sammy Slade, Lydia Lavelle and Randee Haven-O'Donnell also voted to approve the rezoning.

Reiter now must submit more detailed plans and apply for a conditional-use permit. Town advisory boards, the aldermen and the public will have the opportunity to comment on those plans.

The developer has agreed to 13 conditions in exchange for only providing 22 percent commercial space, including the use of energy-efficient design and appliances, green parking and access to alternative transportation. At least 20 percent of the apartments will be priced to be affordable to people earning 60 percent to 80 percent of the area median income, an average rent of $800 to $1,100 per month for a two-person household.

The board's November vote to amend the town's conditional-business zoning and allow greater residential density preceded Tuesday's rezoning. The new category sets a minimum of 20 percent commercial space if developers include environmentally sensitive building and site elements. It is a change from the town's Vision 2020 plan, which recommends at least 40 percent commercial, and Gist expressed concern in November that developers with approved but stalled projects could return to seek commercial space reductions.

Planning director Trish McGuire said the developer of Roberson Square has made inquiries about the change since that meeting.