The City Council tonight gave the go-ahead for developers to build both a 180-car parking lot off of South Elm and an adjacent restaurant to be called Dos Papayas Cantina, featuring Mexican cuisine.

Momentum Development Partners asked the council for a $200,000 loan for the project. The council agreed and voted 8-to-1 to make the loan. Council member Trudy Wade voted against.

The loan will come from the city’s federally funded Community Development Block Grant funds to be used for economic development. In return for the loan, the developers agree to create 12 new full-time and 20 part-time jobs at the restaurant and parking lot.

Technically, the loan was sought from the Greensboro Parking Group, owned by Jim Budd and Nick Piornack. Both also are the owners of Momentum Development.

The parking lot and restaurant development carry a $2.2 million price tag. In addition to the $200,000 city loan, the developers already have a commitment of $1.4 million from a local bank and will add $422,000 in their own funds.

The parking lot is projected to be open by May of this year and the restaurant by early 2013.

The cantina will be next to The WORX, which Momentum Developers have said should open this May, featuring comfort food as well as specialties like gourmet hot dogs and sausages.

Both restaurants will be on Barnhardt Street, which runs off of South Elm just south of the railroad tracks. Barnhardt is directly across Elm from the intersection with Martin Luther King Drive. That corner is the location of the monthly Indie Market on First Fridays.