In response to growing costs for a 109-unit market-rate multifamily building on Main Street in Concord, city officials want to offer $3.5 million for the project.

Dol-Soul Properties is proposing the mixed-use project in the former Department of Employment Security building. The Concord Monitor reports development costs for the project, originally estimated at $23.4 million, have risen by $7 million.

The city hopes the 180,000-square-foot project will provide important tax revenue for the city and help keep the city’s downtown lively.