The city of St. Paul has a million-dollar plan to try to solve some of the parking woes anticipated with the building of the planned Central Corridor light-rail line.

University Avenue will lose 85 percent of its on-street parking -- for good -- when the line is completed, and the city has been looking at ways to solve the problem by improving the use of off-street parking.

A $1 million program approved by the city Housing and Redevelopment Authority on Wednesday will provide incentives to businesses and property owners. They would be able to apply and compete for forgivable loans or grants to improve their lots through such things as repaving or upgrading lighting. It's being looked at as a pilot program that, if successful, could be used in other areas of the city.

"If we can offer some assistance, the hope is that businesses will find reason to work together," said Council Member Russ Stark, who sponsored the program with colleague Melvin Carter III. Stark said it's important to start the program now so people can get used to parking in different places.

City Council members, sitting as Housing and Redevelopment Authority commissioners, unanimously approved the program and the allocation of $600,000 to it.

The $600,000 is split evenly between a portion of the half-cent sales tax fund, known as STAR, that's distributed for council members to use on projects in their ward, and from special taxing districts.

Other steps include using $135,000 of stimulus money to clean up alleys behind businesses and spending $350,000 in capital improvement bond money to repave alleys. Money for those two projects still needs to be approved by the council.

The loss of on-street parking has been a sore spot with University Avenue businesses.

The Metropolitan Council, which leads the project, has said there isn't money for parking.

Project planners spent more than six months identifying trouble spots and seeking solutions. They issued a report that divided the concerns into specific sites and corridor-wide. About 11 areas along the avenue will lose all on-street parking, it said.

There are 25,000 off-street spots, but most are private.

Linda Winsor, executive director of the University Avenue Business Association, said making the money available is a good first step. But "it will not help those who depend on on-street parking and have no options for shared off-street parking," she said.

Stark said more things will be developed to help .

Construction on the 11-mile line from downtown St. Paul to downtown Minneapolis is scheduled to begin next year, with completion in 2014. The cost is $914 million.

Garbage study sped up

Council members on Wednesday also approved a more aggressive timeline for studying organized residential trash collection.

The council's research staff will have 45 days to complete a report outlining the steps and recommending options. A system using existing private trash haulers is preferred.

Several council members stressed that they haven't committed to changing the system.

Right now, people choose who they want to take their trash. But some have complained about noise and wear and tear from too many trucks going down streets and alleys on different days.

"The goal is a more efficient system," Stark said.

Under state law, the city must go through a yearlong process before it can change its garbage collection system.

Chris Havens • 612-673-4148