CHICAGO—The City Council voted Wednesday to sell a parking lot at the corner of Ninth and State streets, in order to allow the development of a $111 million planned apartment tower in the South Loop.

The city sold the 39,000-sq.-ft. lot for $6 million to Ninth St. Investors LLC. A partnership of Golub & Co. and Solomon Cordwell Buenz (SCB) has been trying to get city approval for more than a year to build a 39-story multifamily building.

The tower, designed by SCB Architects, will include 396 market-rate rental units, 9,500 sq. ft. of ground floor retail space, and four levels of parking for at least 248 cars. Construction will begin in 2014.

As a requirement of the proposed sale, the developer will pay $4 million into the city’s Affordable Housing Opportunity Fund. The fund assists with the construction of affordable housing developments throughout the city. “City assistance for these projects will help expand local housing options and keep Chicago affordable for seniors and families,” said Mayor Rahm Emanuel in a statement.