The Hudson City Council has voted against reserving permanent parking spaces for "Corner Cars" car rental program, in which residents of Hoboken, N.J., can rent cars by the hour and park the cars on certain street corners.

Transportation director Ian Sacs said that his goal is to lessen the demand for parking spaces in Hoboken, and he believes Corner Cars accomplishes that goal in the long term by offering other options to residents.

The program was twice approved for 90-day trial periods, but a new city council on Nov. 15 voted against permanently establishing the spots.

Those who have argued against the program say it only benefits about 1,000 people out of the approximately 40,000 residents in the area. Merchants have also complained that the program is hurting local businesses because corner spots near some stores are now reserved.

Sacs said he wants to create a "menu of options" for residents, including bike lanes, Corner Cars, and The Hop, a low-cost local bus service. He believes the program's defeat would create more demand for parking. He believes Corner Cars can go a long way in addressing the problem while he also works on enhancing The Hop and bicycle lanes.

The city worked with Hertz to implement the program so that more residents would give up their cars and free up parking. Forty-five residents have turned in their city parking permits because of the Corner Cars program, and the program has taken 45 cars off the street, while adding 42 cars to corner parking spots.

Another vote on the program is slated for the Dec. 1 council meeting.