Rochester, MN (KROC AM News) - Negotiations on a final development agreement between Rochester and Bloom International Realty took a major step forward Monday.

The City Council approved a purchase agreement for the property where Bloom is proposing to develop its planned Waterfront project.

The deal places an $8-million value on the city property along the Zumbro River between 2nd and 4th streets. The agreement will give the city 173 spaces in a new parking structure that will be built by Bloom. The city will lose 435 spaces when Bloom demolishes the 2nd St ramp to make way for a hotel.

Assistant City Administrator Terry Spaeth says Monday’s city council vote clears the way to finalize a final development agreement between the city and Bloom. Spaeth says the goal is to have the agreement ready for a vote by Oct. 1st.

Bloom is expected to begin work on the project next year.

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