A rendering of the proposed redevelopment of a vacant warehouse at 826 Pennsylvania Street.

The first public incentives request to undergo a new review process will go before the City Commission at its meeting Tuesday.

A mixed-use residential development project proposed for the Warehouse Arts District in East Lawrence is requesting about $650,000 in public incentives from the city, county and school district.

The project would convert the old SeedCo building at 826 Pennsylvania St. into a brewery, restaurant and apartment building. The developer, Williams Management LLC, is requesting a 10-year, 85 percent property tax rebate through the Neighborhood Revitalization Act. A sales tax exemption for the costs of construction materials and remodeling labor, via an Industrial Revenue Bond, is also being sought.

City staff is recommending that the commission approve the incentives based on a cost-benefit analysis as well as the results of a new “but for” analysis. A “but for” review is meant to show that public assistance is required for the project to be financially feasible.

A national consulting firm, which commissioners voted to hire on Oct. 4, analyzed the project’s incentives request. Results from the approximately 60-page report, including the “but for” analysis, will be presented to the commission Tuesday. The firm, National Development Council, determined that the requested incentives are “reasonable” and help to avoid financing gaps that could make the project unlikely to proceed.

City staff completed a cost-benefit analysis in accordance with the city’s NRA policy. The analysis found a 1.36 cost-benefit ratio for the city, meaning that for every $1 in public incentives, $1.36 of benefit value is returned. The threshold is a 1.25 ratio.

Commissioners will also review an affordable housing component for the residential portion of the project. Plans call for two of the project’s 14 apartments to be designated as affordable housing units. On Oct. 10, the Affordable Housing Advisory Board voted unanimously to recommend the proposal, which would provide two one-bedroom apartments for about $840 per month, which includes the cost of utilities.

Other bodies are also due to weigh in. The Public Incentive Review Committee will consider the project’s NRA and IRB request at 3 p.m. on Tuesday, and its recommendation will be added to the proposal that will be presented to the commission in the evening. In addition to being approved by the city, NRA requests must be approved by the county and school district, which will consider their participation at meetings on Nov. 2 and Nov. 14.

At their meeting Tuesday, commissioners will also consider deferring a public incentives request for another mixed-use residential project. The plan for the project, located in the 800 block of Vermont Street, is not complete and the commission will vote on whether to postpone the public hearing until Dec. 6.

City commissioners will meet at 5:45 p.m. Tuesday at City Hall, 6 E. Sixth St.