JOHNSTON — A redevelopment plan, part of an $8.4-million public financing proposal for the revitalization of blighted properties on Hartford Avenue, won unanimous approval from the Town Council Monday night.

Developer Jeffrey Saletin is proposing a $40-million project, called Johnston Town Center, that would bring a hotel, retail businesses and restaurants to the former Stuart’s Plaza property on a busy stretch between Atwood Avenue and Route 295.

Saletin, working with Mayor Joseph M. Polisena, has asked the town to help him raise capital for the project by issuing $8.4 million in bonds.

Under the proposed agreement, Saletin would repay the bonds instead of paying additional taxes he would owe on the property after his development enhances the value of the real estate.

That amount of additional real estate taxes, known as the tax increment, is estimated at $375,713 per year in the project plan.

Saletin and town officials say the town can issue the bonds without assuming financial risk.

Saletin would gradually receive proceeds from the bond sale as his development activity gradually increases the property’s value, according to the plan.

That would ensure that as money from the account is spent, the value of the property would increase and higher taxes would be owed, according to Town Solicitor William J. Conley and Keenan Rice, president of MuniCap Inc., a public financing company that prepared the plan for Saletin.

If Saletin is unable to pay the increased taxes, the property would go up for tax sale and the new owner would be required to repay the bonds under the same agreement, according to Rice.

The precise schedule for the release of the bond proceeds and other details have not been settled.

The 12-page redevelopment plan does not define the final arrangement for financing.

The plan, required by the state Tax Increment Financing Act, is a project description that details the 21-acre area, elements of blight, proposed changes to streets and utilities, estimated costs and the method of financing.

The council approved the project plan in a 5-0 vote.

The council also voted to amend the zoning ordinance to make provisions for a “redevelopment overlay district” where Saletin would have greater flexibility on certain zoning rules, such as those that limit the height of buildings, according to Conley.

mreynold@projo.com