An effort to develop the old Niles YMCA property into a site for medium-to-high-density housing is moving forward.

On Monday, the Niles City Council voted 7 to 1 to approve a memorandum of understanding with French Paper Company President Jerry French for the future development of the 315 W. Main St. property.

“We are very excited and happy to be moving forward with the project,” said French. “We will make sure it is something Niles can be proud of.”

French, a lifelong Niles resident, said he and a group of investors would like to build market rate and above town homes on the vacant land, which overlooks the St. Joseph River and downtown Niles.

It would be the first such project to occur in Niles in almost 40 years, according to city officials.

The approval of the memorandum clears the way for French and investors to begin making financial commitments for the project, including the hiring of architects and engineers. It will be a couple months, French estimated, before people can see potential designs.

French has said the scope of the project is based on how much interest people have in what is being developed. Initially, the plan is to build in stages, about five units at a time.

French has agreed to purchase the property from the city for its appraised value of nearly $25,000.

Vandenheede said he was opposed to the memorandum as written because French is asking the city to do improvements to sidewalks and lighting around the property that would likely exceed the purchase price of the property. Vandenheede proposed that the council add a stipulation saying that the city would pay for improvements not to exceed the purchase price.

The council went forward without adding Vandenheede’s stipulation.

“We are pleased to be working with you Mr. French,” said councilwoman Georgia Boggs.