A $3.9 million city plan to help fund a new public plaza near the Oriental Theatre, as well as other street safety improvements on Milwaukee's east side, won a key approval Tuesday.

The Common Council's Zoning, Neighborhoods and Development Committee recommended approval for a tax incremental financing district to pay for that work. The full council is to review the proposal at its Dec. 13 meeting.

The area centered on East North Avenue between the Milwaukee River and North Prospect Avenue could get bike lanes protected from cars and other changes, including the removal of left-turn lanes.

Such traffic calming tactics would make the neighborhood safer, say the proposal's supporters. And that would help restaurants, taverns and other businesses draw more customers while also setting the stage for additional new development.

The cash to pay for that work would be generated by three new neighborhood apartment developments that are in the works.

The funding would include $2.5 million for an initial phase of street and public space improvements. An additional $1.3 million would be spent in a second phase if the district's property values increase enough to generate that cash.

Also, $100,000 would be available for tenant improvements, façade improvements or other expenses tied to commercial buildings within the tax financing district.

That first phase is to help pay for converting a half-block of East Ivanhoe Place, east of North Farwell Avenue, to a pedestrian plaza. Ivanhoe Place west of Prospect Avenue would be converted from one-way to two-way traffic to allow access to Educators Credit Union's drive-thru window and Overlook on Prospect's parking garage.

That proposed plaza is supported by the East Side Business Improvement District, which is operated by neighborhood commercial property owners.

Milwaukee's 2019 Pedestrian Plan lists East North Avenue as a top automobile crash corridor, and the intersection at North and Farwell avenues is listed in the top 10 of the city's pedestrian high-injury network.

Also, that North/Farwell intersection, which is near bars, restaurants and other attractions, including the Oriental Theatre, had the highest pedestrian count of any intersection analyzed in the city’s Complete Streets Health and Equity Report in 2020.

The tax financing district will tap into property tax revenue generated by a four-story, 56-unit apartment building coming to the 1500 block of East North Avenue; the planned conversion of a historic, two-story industrial building into 17 apartments at 1617-1633 E. North Ave., and a possible 35-unit apartment building at the former Judge's Irish Pub, 1431 E. North Ave., that was recently demolished by developer Tim Olson.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.

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This article originally appeared on Milwaukee Journal Sentinel: Funding plan for east side plaza, street improvements wins endorsement