The CDA-owned Villager Mall on South Park Street has a parking shortage, which isn't necessarily such a bad thing for the once-blighted shopping center.

But the snags are causing officials to juggle with redevelopment of the center; forcing a move by Yue Wah Oriental Foods and putting a surface parking lot on a highly visible corner that had been eyed for a multi-story building.

The city Plan Commission Monday night OK'd the request from the Community Development Authority to raze the 21,500 square-foot "South Building" at the Villager for construction of 105 parking stalls.

The project also includes a 51-stall temporary lot at the corner of Hughes Place and South Park, site of the previously demolished Mobil gas station.

City planning director Mark Olinger says the Villager is getting heavy traffic from an MATC training facility, Dane County human services and other users of the mall.

"So far we've been pretty happy with the results but we've also got some pretty significant parking issues," he says.

The Villager also houses offices of the Madison Urban League and a yet unopened Public Library in a new building at the corner of South Park and Buick Streets.

There are often open parking spaces at the north end of the center Olinger says but not in front of the busy main portion of the center.

"I'm a regular visitor there and I can tell you parking is tight," adds commissioner Michael Heifetz.

Commissioner Eric Sundquist questioned Olinger Monday about the need for more parking. There are currently 427 spaces, increasing to 583 with the new ones.

City staff had also expressed its concerns while backing the project, saying "the Planning Division does not typically support the demolition of buildings to create surface parking."

But Olinger notes there will be even more visitors when the new library opens later this year. He says any future development would likely include some kind of structured parking which could replace the surface spaces.

"We're just looking for some flexibility right now," he says.

Olinger says the CDA is also trying to work with Yue Wah Oriental Foods, which leases about 6,000 square feet in the southern building to be demolished. Olinger says the lease expires in September but the grocery might be interested in another space in the mall.

The CDA, a quasi-public entity, bought the Villager property in 2004 and developed a Master Plan. The idea was to transform the site from a suburban-style shopping center into a more urban center with buildings and activity along the South Park Street frontage.

In 2008, the city provided over $9 million to assist in improvements.

The city is still looking for private developers to participate.

Commission member Ald. Julia Kerr says adequate parking will be central to making the rest of the project happen.

"We're really, really trying to attract some retail," says Kerr. "But I've been told by two different ones they can't park their customers."

Also Monday night, the Plan Commission OK'd demolition of seven city-owned apartment buildings at the corner of Cypress Way and Badger Road.

The CDA had purchased the properties under its powers of eminent domain, despite protests from landowners they were being paid below assessed value.

The CDA on Friday landed $714,000 in low income tax credits from the Wisconsin Housing and Economic Development Authority for the project. Horizon Development has been named developer.

Brad Boyle of the Burr Oaks Neighborhood Association says the new housing will be a boost for the area.

"Having some quality senior housing is something our neighborhood has been talking about for 10 years," he says. "There aren't many choices for people who want to stay."

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