I suggest you set market-rate parking rates for parking on public land. This includes parking meters, city parking lots, and street parking.
Parking would remain free or very low cost in less dense neighborhoods where the market rate is close to $0. It would be higher in dense areas like downtown, Capitol Hill, and Belltown.
Businesses would not be hurt because parking costs would be based on what the market will bear (and not more). Right now, Seattle is giving away hundreds of millions of dollars through parking subsidies on public land.
Parking could move towards a variable pricing model like San Francisco, but that probably could not be implemented next year.