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A new deal has been signed to save the city’s beloved Milk Pail Market, but it only goes into effect if the City Council approves the second phase of Merlone Geier’s redevelopment of San Antonio shopping center, a decision scheduled for Tuesday evening’s council meeting.

In order to meet city parking requirements and stay open, Milk Pail Market owner Steve Rasmussen says he signed a deal Monday, Dec. 1, with developer Merlone Geier to lease 31 parking spaces on an adjacent property that Merlone Geier now owns.

“Yesterday a final agreement for the future parking for the Milk Pail was signed and it pretty much resolves the dilemma of not knowing what our future was going to be,” Rasmussen said.

The parking lot will be on the corner of San Antonio Road and California Street, now home to two restaurants. One or both would presumably be torn down to make way for the parking lot, Rasmussen said.

Rasmussen called the agreement “long-term” as well as “fair” and “definitely acceptable.” He would not to divulge details on how much he would have to pay per parking space or how long he would have rights to the parking.

In July a similar deal fell through when the City Council did not approve Merlone Geier’s proposal to build a movie theater, hotel, office space and retail space. It would have allowed Milk Pail customers to use a parking garage under an office building Merlone Geier proposes to build behind the market.

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