HOLLADAY — The second-largest owner of malls in the United States was given official go-ahead by a committee of taxing entities Friday to build a mixed-use development in place of the Cottonwood Mall.

The group that approved $76 million in public funding for the General Growth Properties project was made up of Granite School District, Salt Lake County, Holladay city, a special taxing districts' representative and the Utah Board of Education.

The Utah schools representative, Larry Newton, abstained from the vote, citing state school board concerns with the project's size and cost, among other things. Each of the other votes was in favor of the project.

The decision means the taxing entities will allow about $96 million in deferred property taxes over the next 20 years for infrastructure improvements at the mall site, including about $20 million for unrelated low-income housing projects. The money will come out of taxes that would have been paid by the development, in a process known as tax-increment funding.

Salt Lake County Mayor Peter Corroon has pushed the low-income housing part of the deal for the past month or so, he said after Friday's vote. Low-income housing has always been a priority of Corroon's, his spokesmen said.

The county and Holladay will form a committee within the next few weeks to plan how the low-income housing money will be spent, said Randy Fitts, Holladay city manager. According to the resolution passed Friday, the redevelopment agency will require the developer to create or refurbish 100 residences at or below 80 percent of the affordable housing levels for the area.

All RDAs are required by state law to include provisions for housing, Fitts explained.

Holladay could refurbish apartments within the city or could build new homes and subsidize construction, Fitts said. The city is interested in drawing young families to its community to add diversity, vitality and a strong consumer base. City officials also believe younger families will improve local schools, Fitts said. The housing money will be spent over the next decade.

The next step for the Cottonwood Mall redevelopment project will be a budget meeting by the tax entities committee to be followed by a public hearing on the project's budget, to be held in Holladay City Council Chambers Feb. 7.

Meanwhile, GGP will continue demolition of the old mall and work to finalize its plans for the new project. GGP has already submitted a master site plan to Holladay, said its spokesman, Kris Longson.

The project will encompass 57 acres along Highland Drive near 4800 South and will be made up of16 percent commercial space, 21 percent residential space, 13 percent open space and landscaping and 49 percent streets and parking lots.