Salt Lake City leaders want more housing downtown — something they think will bring greater retail development and vibrancy to the city's core.

But a new affordable-housing project being pushed by Salt Lake County Mayor Peter Corroon, who will be part owner of the 200-unit apartment complex, is raising concerns among some City Council members for multiple reasons.

One is the focus on strictly low-income or "affordable" housing in the downtown area. Another is Corroon's involvement not as a county official but as a businessman and the potential for conflicts posed by those two roles.

This week Corroon and business partner Kevin Keating were before the City Council asking for an $850,000 loan that would be the final funding piece for the $18.5 million low-income housing project. The county mayor wasn't representing taxpayers but visited City Hall as a private consultant for a group looking to make the City Plaza Apartment project, 150 S. 200 East, a reality.

While Corroon has tried to shed the developer hat he wore before becoming mayor, he has been unable to walk away from this deal, which started two years ago, before he had eyes on the county's top job.

He noted the project probably would have been finalized before now if the city hadn't put a freeze on all housing loans while it created a new housing policy.

"I can't get someone else to take over," Corroon said.

The mayor maintains his involvement in the apartments won't affect his dealings as the county's chief executive.

"I wear the two different hats and put up a wall between them," he said. "All the council members have their own businesses and work for their businesses. . . . There are other mayors that have their own businesses. There are times when you're going to be dealing with government entities in your own county and own state."

City Council Chairman Dale Lambert said having Corroon come to the council as a private developer asking for a loan "was a little odd" but maintained his decision will be based on the loan's merits, not on who is backing it.

"I was involved with (Corroon) in a discussion about the Salt Palace expansion the next day, and this didn't come up at all," Lambert said.

Councilman Carlton Christensen agreed that seeing the county mayor as a private developer was strange, but like Lambert, he said Corroon's involvement wouldn't prejudice his decision on the loan.

"With all the Salt Palace negotiations going on, you hate to make him mad, but I wouldn't do a loan just to appease him," Christensen said. "I thought it was pretty awkward for him, too."

Other council members said they were a bit surprised to see Corroon, especially since he ran on an ethics reform platform and this project could at least give the appearance of a conflict.