Business and property owners along the planned Central Corridor light-rail line will have to pay assessments for street improvements when the line gets built, but not before.

Taking the comments of critics into consideration, the St. Paul City Council on Wednesday approved a $3 million assessment plan for property owners along University Avenue and in downtown that will defer payments until after the entire line is built.

The rates won't be finalized until fall of 2014 or whenever the Central Corridor light-rail begins operating.

That will give city officials time to look for ways to lower the rates, said Council Member Melvin Carter III.

Usually assessments are paid in the fall after summer construction. Many business owners complained during a recent public hearing that because construction will be done in phases, they could face a double whammy of having their business interrupted and having to pay the tax. About 85 percent of all on-street parking will be wiped out when the line is completed.

The assessments are part of a cocktail of funding sources -- including special taxing districts, sales tax revenue and bonds -- in an $18.8 million plan for street enhancements.

The Metropolitan Council, which is leading the project, is covering the basic street reconstruction, including sidewalks, and the line itself.

St. Paul officials, however, wanted upgrades such as more trees, nicer lighting and an additional station.

The 11-mile line, which will connect St. Paul and Minneapolis, has a $941 million budget and is expected to begin running in 2014. Project planners are trying to get the Federal Transit Administration to pay for half the cost, but a decision isn't likely until September.

Council Member Russ Stark said it will cost about $40,000 to defer the assessment payments, but there are ways to pay it. "In the scheme of things, it's a relatively modest cost," he said.

Chris Havens • 612-673-4148