Plans for a new downtown parking garage have been flattened.

The city parking authority Wednesday night approved a tentative agreement for the developer of the Centre City project to build a 75-space surface lot instead of the previously proposed 225-space garage.

The parking lot, which will be on the corner of South McKean and East Cunningham streets, will not be open to the public, but instead will be reserved for guests of the new 75-room Marriott Springhill Suites hotel to be built next door.

The authority said the proposal for a flat lot is a safe, cost-saving measure.

“This agreement is a tremendous victory for the taxpayers of Butler,” said authority treasurer Jeff Smith.

The original plan for the 225-lot garage left a projected shortfall of more than $100,000 per year in revenue that would have required increased parking rates or other measures, Smith said.

The surface lot is expected to generate about $15,000 for the authority.

J.S. Capitol Construction is the developer of the Centre City project, which includes most of the block surrounded by South Main, South McKean, East Jefferson and East Cunningham streets.

The project also features a new Rite Aid Pharmacy under construction on Main Street.

Authority Chairman Jim Chiprean and Smith met with Jeff Schmitz, the owner of J.S. Capitol, earlier this month to discuss parking for the hotel, which had its financing approved last month.

Smith said the group discussed three options of the space: the previously proposed 225-lot garage, a smaller 150-lot garage, and the flat surface lot.

Both garage plans offered parking for the public and hotel guests.

The largest garage carried an estimated price of $4.5 million while the smaller structure was estimated to cost $3 million.

The flat lot is estimated to cost $450,000.

“Everyone involved quickly reached the same conclusion on which one was the best for the city,” Chiprean said.

Smith said the parking is the final hurdle the developer needs to clear before it can begin construction on the hotel. He guessed the developer would break ground sometime after the board ratifies the agreement at next month’s meeting.