MARSHALL — With the amount of new development going on near the intersection of Main Street and College Drive, the city of Marshall is looking at options for expanded public parking.

On Tuesday, members of the Marshall City Council approved an agreement to lease a parking lot near the new Ralco headquarters downtown.

The city will also be re-paving the parking lot, city staff said.

Discussion of the parking lot went back to Ralco’s decision to move into the former Mercantile and New Atlantic Hotel buildings downtown, said Marshall City Administrator Sharon Hanson.

“We then began discussions on general parking in downtown. We knew that we also had a Block 11 development that we currently know is going on, and some additional pressures on parking,” Hanson said.

One possible option for public parking downtown was the smaller section of the parking lot located behind the Ralco headquarters and across the Redwood River. Hanson said Knochenmus Enterprises wanted to maintain ownership of the parking lot.

“So we started discussing a formal lease agreement that would allow public use of the parking lot.”

Hanson said the proposed lease agreement would be for 30 years. Under the terms of the agreement, the city would pay $30,000 a year for the first 10 years of the agreement. No rent would be charged for the remaining 20 years.

Hanson said the proposed lease agreement would supersede an existing agreement with Schwan’s for the parking lot.

“There was a request by Knochenmus Enterprises to also have the smaller parking lot paved. In this case they requested concrete,” Hanson said. “Our engineering staff and Public Works Director (Jason) Anderson did look at that.”

Under the lease agreement, the paving project would follow the city assessment process. Knochenmus Enterprises would be assessed for the concrete paving project.

“This is a good solution, with a public-private partnership to provide that parking, as well as to encourage and support a major employer,” said Marshall Mayor Bob Byrnes.

Council members voted unanimously to approve the lease agreement.