Parallel parking will be installed along Packard Avenue between Howard Avenue and Lake Drive.
The Common Council unanimously chose parallel parking over angled parking April 21.
It has not been decided if construction will take place this year, City Administrator Ralph Voltner said.
Officials are moving forward with engineering work, and the bidding process will begin in the near future.
The project is anticipated to cost $225,000 for 49 parking spaces. There are currently 69 parking spots along Packard Avenue.
City Engineer Melinda Dejewski said there will be less parking stalls because crews will make two driveway cuts for the Mandel Group's property, a vacant 13-acre triangular parcel between Packard and Howard avenues and Lake Drive.
The Mandel Group's Web site shows a development called Lakeside Market Square, which would house a grocery store, retail space and two restaurants. Plans call for about 700 on-site parking spots.
The parallel parking on Packard is intended to benefit businesses in the area, particularly Carleton Grange Pub and the occupants of Merchants Row.
But Carleton Grange Pub owner Eric Ellsworth has said he would prefer angled parking because it would create more stalls near his restaurant than parallel spots would.
George George, a Board of Public Works member, said the panel recommended parallel parking because it's safer, noting Packard Avenue is not a particularly wide street.
Chantel Balzell can be reached at (262) 446-6602.
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