The city will introduce an ordinance Thursday to approve the proposed tax increment financing plan for the Centre City Project.

The proposal calls for a five-year extension to the current TIF district that was approved in 2008 for the site of the Centre City project. The total time of the district would be 20 years.

The district includes the block bordered by South Main, South McKean, East Jefferson, and East Cunningham streets.

The Centre City project will bring a Marriott Springhill Suites hotel, a Rite Aid pharmacy and a 225-space parking garage to the block.

The taxing bodies of the district agreed that 80 percent of the incremental real estate tax revenues will be used to pay for costs of the project. The remaining 20 percent will be paid to the three taxing bodies.

The Butler School District and the Butler County Commissioners have already approved the extension.

There will be $2 million worth of improvements to public infrastructure in the TIF district as part of the Centre City project, including the widening of Cedar Street.

The projected assessed value of property in the district after the improvements is $896,000, which will result in a tax increment of $117,980 after construction. Of that amount, about $23,500 will be divided among the three taxing bodies.

The current assessed value of the properties in the district is $204,310.

The city will have a public meeting on the TIF district at the beginning of its 7 p.m. meeting Thursday.

It will have the first of two required readings of the ordinance at that council meeting.

Council also will have its first reading of an ordinance guaranteeing the $2 million grant the city redevelopment authority will receive from the state Department of Community and Economic Development for the project.

The redevelopment authority must take out a loan for the $2 million and will then be reimbursed by the state.