Any taxpayer money spent on a parking garage must benefit all Londoners, not just private interests, the London Chamber of Commerce says.

And before city council spends any money on downtown parking, it should set up a permanent authority to develop a strategic plan and stay on top of parking issues.

"We have to be cautious," chamber general manager Gerry Macartney said. "Any parking garage has got to have multiple uses and purposes (hourly, daily, monthly and long-term parking) so it's available to everybody."

The chamber sent a letter to council outlining its position.

Council voted 9-8 Monday to seek a private firm to build a parking garage at a city-owned lot on Queens Avenue near Richmond Street.

It also voted 10-9 for a policy to give grants of as much as $10,000 a spot up to 500, or $5 million, to a developer willing to build a parking garage.

Neither initiative is approved for funding, but should be part of council's 2007 budget talks next month.

The close votes suggest the issue could get a rough ride.

Deputy Mayor Tom Gosnell is pushing for off-street parking, noting the city lost 500 spots when the new Covent Garden Market was built. The city lost at least another 500 surface spaces with construction of the John Labatt Centre and the twin apartment towers going up at King and Ridout streets.

"If we don't do something soon, there will be irrevocable pressure to move offices out of the downtown, or to demolish more heritage buildings for parking, and then it becomes a disaster zone," Gosnell said.

Downtown landowners, led by Shmuel Farhi who owns more than 70 buildings and hundreds of thousands of square feet of empty office space, said they need off-street parking to lease vacant space.

Farhi has threatened to demolish heritage buildings for parking, including the old Capital Theatre.

City planners and downtown businesses say demolitions will destroy the core's streetscape.

Coun. Joni Baechler leads opposition to spending taxes on a parking garage, arguing the city has already spent more than $110 million to support downtown revitalization, not to mention incentives and other programs.

"Where does it stop?" Baechler asked at Monday's meeting.

As well, Baechler and others, including Controller Gina Barber and Coun. David Winninger, argue the city should focus instead on improving public transit, biking, car pools and better access for pedestrians.

Gosnell agreed other options should be explored, but argued demand for off-street parking will get worse in the next few years as more surface lots are developed.

"You have to have a balanced approach and address the issue in a sensitive way," said Gosnell, warning revitalization will stall without more office workers in the core.

He said taxpayers will benefit in the long run from increased property tax assessment. "If we're not going to do something about the off-street parking, then we might as well writeoff the downtown and let the office jobs move to the suburbs," Gosnell said.

Macartney agreed the city will need off-street parking in the coming years.

"But wouldn't it be better to have a comprehensive downtown parking plan before we make any decisions that tell us where we want to be in the future?"

Macartney also agreed about the need to fill empty office space in the core, suggesting it would spur use of public transit since many workers already take the bus.

"If we don't have growth stimulated by parking in the core, then we won't get the kind of ridership we're looking for."