A 12-story multi-use project near the Doubletree hotel on Lavaca and 14th street that was originally announced in 2008 is likely to rise next year. The developer, Palmco, is asking the city council on December 10 for a height variance to allow construction of the 163-foot tall building in an area zoned for construction of buildings as tall as 120 feet. Palmco, the developer, is proposing that "Capital Terrace" will include apartments, offices, shops, five levels of parking, and a restaurant within just a few blocks of the Capitol. Two of the project's parking levels will . . .