Wilmington leaders will consider a rezoning and providing gap financing Tuesday for a 120-unit workforce housing project planned for the current site of a Market Street hotel.

Blue Ridge Atlantic Development is planning the 100% workforce housing development on just over four acres at 2929 Market Street, the site of the Azalea Inn & Suites. The project, called Apex on Market, would include units priced between 30% to 80% of the area median income for a minimum of 30 years.

Officials with Blue Ridge Atlantic Development are asking city leaders to rezone the site from its current O&I, an office and institutional district, to a conditional MD-17, a high-density, multiple dwelling residential district, to allow their plans to move forward.

Last month, the Wilmington Planning Commission recommended a rezoning for the project in a 4-1 vote, despite concerns about the project’s size and its impact on traffic in the area. The Wilmington City Council will have the final say on the site’s rezoning at its regular meeting on Tuesday evening.

The proposed complex would be made up of two four-story buildings. The project would include 48 one-bedroom, 40 two-bedroom and 38 three-bedroom units, according to site plans.

The project will also include outdoor and indoor amenity areas with a playground, exercise facility, business center, multipurpose room and leasing office, Sam Weldon, Blue Ridge Atlantic Development’s director of development, told the city's planning commission last month.

City council members are also set to consider an application from Blue Ridge Atlantic Development for $1 million in gap financing for the development.

The project, which is being funded through Low-Income Housing Tax Credits, has an estimated cost of approximately $40.2 million, according to city council agenda documents. The requested $1 million in gap financing would come from the city’s General Fund Committed Affordable Housing Fund.

The project is expected to offer 23 units at 30% area median income (AMI), 30 units at 50% AMI, 31 units at 60% AMI and 36 units at 80% AMI, according to agenda documents.

This is the third local project for Blue Ridge Atlantic Development. The firm also developed the Residence at Canopy Pointe, a 72-unit affordable senior apartment complex, and plans to break ground this fall on Avenue Flats, a 184-unit workforce housing complex on South Kerr Avenue.