Developers who’ve proposed a controversial 27-story, 300-foot tall apartment tower in downtown Colorado Springs submitted their project this week to city government planners — a key next step as they seek to construct what would become the Springs’ tallest-ever building.

At the same time, the Colorado Springs City Council is expected to decide Tuesday whether to designate the apartment tower site as an urban renewal district, which would allow millions of dollars in future tax revenue generated by the building to be used to help pay for its construction and project-related public improvements.

The O’Neil Group, a Colorado Springs private equity firm, and VeLa Development Partners, a Kansas City, Mo., high-rise, multifamily developer, have proposed the apartment tower on a block bounded by Cascade and Vermijo avenues and Costilla and Sahwatch streets in southwest downtown. Its height would eclipse the 16-story, 248-foot Wells Fargo Tower three blocks to the north in downtown, which is the city’s tallest building.

A year ago, the developers proposed a building of 36 stories that would rise 350 to 400 feet tall. In June, they revealed they had scaled back the project as a cost-saving measure — adding their decision was not a concession to simmering opposition from area residents who complained the original structure’s height would have interfered with cherished mountain views and been out of character for the city and its downtown.

In general, the developers have said the apartment tower would appeal to residents who want an urban lifestyle and the ability to walk and bike to downtown’s restaurants, bars, coffee shops, stores, parks and museums.

Also, they’ve said many skilled young workers crave high-rise living that they’ve grown accustomed to in other cities; attracting those employees to the Springs with such a housing project would, in turn, benefit businesses who need a talented labor force, the developers have said.

Among other features, the O’Neil-Vela high-rise — to be called One VeLa — would have 404 apartments, with a mix of studio, one-, two- and three-bedroom units; 8,329 square feet of retail space; more than 30,000 square feet of interior and exterior amenity space for residents; and a 459-space, four-floor parking garage that would include 48 spaces for public use, according to documents submitted this week to city planners.

O’Neil Group officials weren’t available to elaborate on the project’s latest details, but did acknowledge it remains 27 stories and 300 feet at its highest point.

By submitting their project to the city this week, The O’Neil Group and VeLa Development have triggered what’s likely to be a monthslong review process by government planners. They’ll determine if the apartment building proposal complies with Colorado Springs’ form-based code, which created a zoning district 15 years ago that covers downtown. In general, form-based zoning regulates physical standards instead of land use and encourages development in the area that creates a more urban look and feel.

Under the form-based code, there is no height limit for apartment buildings in the area where The O’Neil Group and VeLa have proposed their project.

City staffers can review and determine on their own whether the apartment project complies with the form-based code, though that administrative action can be appealed to the Downtown Review Board, a nine-member, City Council-appointed panel that oversees development applications made under the form-based code, The Gazette previously reported. In turn, Downtown Review Board decisions can be appealed to the City Council.

At the same time, if a project regulated by the form-based code requires a conditional use permit or if its developers are seeking relief from the code’s development standards, a public hearing would take place at the Downtown Review Board and an appeal to the City Council could follow.

Also, city staffers and applicants — in this case, The O’Neil Group and VeLa Development — have the option to refer the project to the Downtown Review Board even if it could have been approved administratively.

Ryan Tefertiller, the city’s urban planning manager, said Friday a city staff review of the apartment tower project might not take place until the spring.

The O’Neil Group and VeLa Development first submitted their proposal to the city’s Urban Renewal Authority last year as part of the process of seeking an urban renewal designation for the project.

On Tuesday, City Council members will determine if the apartment tower project has qualified for that designation. The City Council meets at 9 a.m. at City Hall, 107 N. Nevada Ave. in downtown Colorado Springs.

Among other decisions, the council must sign off on a consultant’s findings that the apartment tower site is blighted — according to state standards — and must approve an urban renewal plan that spells out project details.

The project site already was declared blighted as part of a 2001 urban renewal designation for much of southwest downtown. That designation is due to expire next year and developers want a new urban renewal district created.

An urban renewal designation would allow increased property and sales tax revenues generated by the new project — known as tax-increment financing or TIF — to be earmarked to help fund the project. Such financial incentives were put in place by lawmakers to encourage developers to invest in downtrodden areas that otherwise would sit idle.

In the case of their project, The O’Neil Group and VeLa have said it won’t be financially feasible without an infusion of tax-increment financing. In June, the developers estimated the project cost at $202 million.

In October, the City Planning Commission reviewed whether the apartment tower complied with the city’s comprehensive plan. Financial details presented during that review showed the project would have nearly $23 million worth of public improvements that would be eligible to be funded with increased property tax revenues generated by the project; those expenses would include $16.9 million for parking, $3.8 million for affordable units and $1.5 million in façade and art costs.

The project, meanwhile, is expected to generate $11 million in tax revenues for use on public improvements.