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WATERLOO -- The city is preparing to sink another $375,000 into cleaning up the former Construction Machinery Co. site.

Waterloo City Council members voted unanimously Tuesday to approve a contract for that amount with Environmark Corp. of Davenport to complete remediating underground contamination at the former manufacturer at Vinton and Glenwood streets.

"They'll be removing the underground storage tanks," said Community Planning and Development Director Don Temeyer.

Environmark also will chemically treat lead hazards in the ground so the project receives clearance from the Iowa Department of Natural Resources for redevelopment.

The city expects to spend another $100,000 for design inspection during the project, and the nearly $500,000 price tag will be covered with a $200,000 Environmental Protection Agency grant and another $300,000 loan, of which the city must repay 80 percent.

The vacant CMC site had been the subject of several arson fires when the city took it over and razed the buildings several years ago.

Temeyer hopes the cleanup will make the area attractive to a potential business.

"It will be light industrial," Temeyer said. "It's not like we're going to build a daycare or residential there."

In other business, council members approved:

-- An agreement with the Iowa Department of Natural Resources for $3.5 million in federal highway funds to extend West Shaulis Road between Hoff Road and Highway 21, including repaving Ansborough Avenue from Highway 20 south to Shaulis. The city must agree to match the federal funds with $880,000, expected to be a combination of local option sales tax revenues and general obligation bonds.

Construction could begin in late 2008 or early 2009, pending environmental work, land acquisition and design.

-- A $14,000 "historical and architectural survey" of a number of downtown buildings, which could lead to establishing a historic district on the downtown's east side.

Contact Tim Jamison at (319) 291-1577 or tim.jamison@wcfcourier.com.

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