The city of St. Paul will help a developer associated with the new Keg and Case Market on West Seventh Street build an additional surface parking lot, with the condition that the city gets to keep 75 percent of any net revenues.

Meeting as the St. Paul Housing and Redevelopment Authority, the St. Paul City Council on Wednesday voted 5-0 to use up to $264,000 of Neighborhood Parking Improvement funds for a “forgivable” loan to developer Waterlemon, LLC.

The funds will cover the construction and development of roughly 44 parking spaces within an unused lot at 570 Webster St., across the street from the market’s existing parking lot, which is frequently full.

The loan will cover the lion’s share of the $291,000 project, which is intended to take parking pressure off the surrounding residential neighborhood. Council Members Rebecca Noecker and Dai Thao were not in attendance at the HRA vote.

The loan does not have to be paid back if the parking lot remains in operation for seven years. The developer plans to charge patrons who park there for more than an hour, and the city will keep 75 percent of the net revenue each year.