Renovating and expanding Albert Lea’s City Garage came one step closer to reality Monday.

The Albert Lea City Council approved a professional services agreement for $174,000 with architectural firm BKV group for the designing, bidding and construction oversight services for the first phase of the public works facility project to demolish a portion of current administrative offices and create additional administrative space.

The agreement passed on a 6-1 vote. Councilors Larry Anderson, John Schulte V, Larry Baker, Al “Minnow” Brooks, Reid Olson and Mayor Vern Rasmussen Jr. voted yes. Councilor George Marin voted no.

The first phase of the project is expected to cost about $1.5 million and would include having one break room and converting two other break rooms into additional storage and workspace to increase efficiency.

Phase two is expected to cost approximately $8 million. An addition is planned, and construction is planned to the north and the west of the current facility. Phase two would add fleet space for city vehicles. The flow for all the vehicles is planned to be improved, and a salt storage shed would be added.

The council approved purchasing more than 2.5 acres in May at 1016 Madison Ave. for the project.

Albert Lea City Manager Chad Adams said the city plans to have the project be bid in January or February, and have a contract for the project awarded in March or April.

He said the project would provide more a more reliable space for staff, and added that some portions of the building are older than 100 years old and are beyond its useful lifespan.

Adams said the site has room for expansion, and is a centralized location in the community.

Baker said the project is a necessity to increase space at the current facility.

“It is a project that needs to be done,” he said, and added that the second phase of the project will not likely take place for a while, if it happens.

“That is going to be a few years down the road, because that is a lot more money,” Baker said.

In other action, the council:

Authorized executing a Minnesota Department of Transportation grant agreement for Albert Lea Airport arrival and departure building and parking lot project. The council postponed establishing a task order with Mead and Hunt for the redesigning, rebidding and construction oversight for the project until November.

Approved installing a dynamic sign on U.S. Highway 65, north of Seventh Street.

Accepted a $4,000 grant award from Roland Hanson and Kay L. Hanson for the Taste of Heritage Festival.

Abated assessments to 225 Ridge Road and 311 Fairview Drive.