The Albert Lea City Council on Monday voted to move forward with a street project on the north end of town.

The project calls for a bituminous mill and overlay and curb and gutter replacement on Y.H. Hanson Avenue from Hammer Road to Sykes Street, on Hershey Street, from Bridge Avenue to Y.H. Hanson Avenue, and on  Sykes Street, from Bridge Avenue to about 700 feet west of Y.H. Hanson Avenue.

City Engineer Steven Jahnke said through overlaying the pavement, city leaders hope to get another 20 years out of the roadway.

Jahnke said the surface of Sykes Street from Y.H. Hanson Avenue to about 700 feet west is deteriorated past the point where an overlay would be effective, so there will be a complete reconstruction of this portion.

Jahnke said the project is estimated to cost about $662,000. About $317,000, or 48 percent, would be paid for through assessments, while the remainder, $345,000, or 52 percent, would be paid through state aid funds and tax-exempt bonds.

He said the average assessment would be about $9,000, but the highest assessment — for Riverland Community College — is worth $62,000.

Bids will be opened May 6, with the project to run from June through August.

In other action, the City Council:

• Voted to allow City Manager Chad Adams to negotiate the sale of five acres of land near City Arena.

Adams said a developer is looking to build market rate rental housing there. Public hearings will be held before the council can take any final action.

• Ordered the advertisement of bids for downtown alley sewer sliplining. Bids will open May 6.

• Called for a public improvement hearing for the city’s neighborhood improvement project for this summer.

The estimated $1.1 million project calls for the bituminous overlay of several streets in the southwest part of town. Part of the project was previously inadvertently left off, so the city had to reorder preparations for the project.

The public hearing scheduled for Monday about the project has been moved to April 14.

• Heard a presentation from the city’s public safety director, finance director and library director about accomplishments from 2013 and goals for 2014.

• Approved “no parking” signs on Sykes Street from Y.H. Hanson Avenue to 1300 feet west.

• Approved an administrative lot survey for property at 401 Pilot St. The owner of the property wanted to combine two lots to expand Mini Max Storage.