The city would get at least 350 public parking spaces in the mixed-used development at Sixth and St. Joseph streets, according to the project's master development agreement.

That's a net gain of 215 spots over the current city-owned lot at that location.

For downtown employees, more parking could only help the "shuffle" situation - so long as rates don't go up and people actually use the spots.

"Any time you can bring more spots to downtown, that's got to be a good thing," said Heath Epperson, manager of St. Joe Antiques Mall. "You can only hope."

On Wednesday, the city's Legal & Finance Committee unanimously approved the development agreement with the St. Joe Investment Group. The full city council will vote at its meeting Monday, Sept. 21.

In August, the council chose the St. Joe Investment Group, made up of FourFront Design and Sioux Falls developers, to move forward with the public-private development project.

The multistory, $22 million building would include 10,000 square feet of retail space, 40,000 feet of office space, 40,000 feet of loft-style residential space and between 500 and 650 parking spots for tenants and the public.

Under the development agreement, the city guarantees $2.8 million in 2012 funds and no more than $5 million in tax-increment financing toward the project's public improvements.

Public parking spots will be leased to the city for $1 a year for the period of time required under New Market Tax Credits, one of the developers' financing options. According to the agreement, the investment group is seeking $15 million in tax credits for the project.

After that period, the parking spots will be transferred to the city.

"We're right on time," said Bryan Vulcan, president of FourFront Design. "We're staying on schedule for a late summer 2011 completion."

Sharon Faimon, owner of Forget-Me-Not Floral shop, said 350 spots could go far in solving downtown parking issues. Her employees currently park in the city lot at Sixth and Main streets, the proposed site of the Main Street Square public plaza.

"As long as some of them are metered for those people that only work a couple of days and can't buy or don't want to purchase a leased parking permit - we have to have a sufficient number of parking spots where you feed the meter," Faimon said. "But that sounds like a great idea."

Joyce Croop, a hair stylist at a downtown salon, was more ambivalent. Although some customers complain about the difficulty of finding a parking spot downtown, she hasn't had any problems. She leases a spot in the Sixth and St. Joseph lot.

"I just don't want to pay more for it," Croop said. "But I understand you have to move forward."

Antiques Mall manager Epperson said the key will be making the public aware that the parking in the development is both public and private. The antiques mall currently leases two spots in the Sixth and St. Joseph lot.

"Signage will be important," he said. "Metered or day parking, not just private parking - it has to be known as public."

Contact Emilie Rusch at 394-8453 or emilie.rusch@rapidcityjournal.com.