SANTA CRUZ — One of the largest proposed developments in recent Santa Cruz history should earn some relief in meeting downtown parking requirements, a city panel agreed Thursday.

Developer Owen Lawlor of LHH Partners is proposing to combine seven parcels and demolish five commercial buildings to build a six-story 205-apartment structure with ground-floor commercial space near the intersection of Front Street, Laurel Street and Pacific Avenue. Though short of parking requirements, the project would include a parking garage.

The Santa Cruz Downtown Commission approved a finding that enough parking exists elsewhere in the downtown district to cover a projected shortage of

37 to 65 spaces. The 315,698-square-foot project’s heavy draw on parking availability, however, may affect future downtown developments, city Parking Program Manager Marlin Granlund wrote in a report to the commission.

The project next goes before the Santa Cruz Planning Commission and Santa Cruz City Council for approvals.