A prototype condo building will be constructed on a Midtown alley after approval by the city earlier this month.

The Planning Division of the Sacramento Community Development Department granted a parking waiver and a side yard variance on Oct. 8 for a pilot alley residential project known as "Stitch" when developer Jeremy Drucker worked out compromises to address nearby residents' concerns.

"The biggest concern was how heavily that block is impacted for parking," said Drucker, who previously developed 9 on F, the central city's first residential project certified by the U.S. Green Building Council for its Leadership in Energy and Environmental Design. Drucker made his comments Thursday at meeting of the Alley Activation Committee.

Drucker's newest "green" building will contain three condos and a garage at the back of a deep lot that is behind a house at 1717 Capitol Ave. The architect is Ron Vrilakas.

The residential units would face Old Soul coffee roastery, which also sits on the alley that runs from 17th to 18th streets, between L Street and Capitol Avenue. That's one of three alleys where property owners are currently proposing pilot alley projects.

Drucker is helping to lead an "alley movement" in Sacramento. Some people involved in a so-called alley activation effort have expressed interest in potential retail and other uses. Drucker said his goal is to add housing that builds density in Midtown without demolishing historic architecture, and to do so at a cost that keeps young people from being priced out of the housing market.

"These old homes are expensive," Drucker said. "They're often more than most people can afford — from a purchase standpoint and even maintaining the properties."

Expected to open in May, the Stitch building will be used as a sales model for three years, after which time the units will be sold, Drucker said.

The back of the lot had been used as parking for eight cars belonging to people who worked for restaurateur Ernesto Jimenez, who uses the house as an office, or at his restaurant Zocalo, at 1801 Capitol Ave. Jimenez also owns Ernesto's Mexican Food, at S and 16th streets.

Neighbors already cramped on parking in the bustling Handle District were worried about the elimination of the eight spaces and an agreement to allow Jimenez or an employee to park in one of the prototype garage's three spaces.

Drucker has agreed to rent a parking space in a nearby lot for one tenant. He also will provide a one-year public transit pass to that tenant, who will live in a ground floor unit accessible for the disabled.

The city also granted a variance allowing a side yard, which will be used for a courtyard entrance, to measure 5 feet 6 inches instead of the standard 10 feet, Drucker said.