This paves the way for city staff to hammer out an agreement with the developer to build on two city-owned parking lots and a developer-owned lot at the corner of Second Avenue North and Roberts Street.

Four commissioners voted for Kilbourne Group's proposal, which the Parking Commission earlier recommended as the best of three proposals. The fifth commissioner, Tony Gehrig, voted "no" because he generally opposes tax incentives.

Kilbourne estimates the cost of the project at $29 million, which includes a 381-stall ramp, a commercial and residential building wrapped around it to preserve the pedestrian-oriented streetscape, and another mixed-use building across the street. Together the buildings will have 143 apartment units and 16,200 square feet of retail.

The city earlier created a tax-increment financing district where the additional property tax generated will be used to pay for the parking ramp, estimated at $7.5 million to $8.5 million. The city would get $300,000 from the developer for its two lots. Kilbourne Group is also eligible for five-year Renaissance Zone property tax exemptions.

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Commissioner Mike Williams said the city collects little property tax from empty lots now, but would get plenty of revenue with buildings on the lots.

Work may begin as early as May, with the ramp available for use in December.

Kilbourne Group also has plans to build a $10 million parking ramp and mixed-use building on another private lot to the north after it completes the city project.