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LAS CRUCES - A new agreement, approved Monday by the Las Cruces City Council, will provide an additional $489,060 in state funding to reopen a three-block portion of Main Street, from Griggs Avenue south to Lohman Avenue.

The money would be used to pay for right-of-way acquisition and construction. The changes would also extend the agreement between the city and the state Transportation Department for an additional year, to Sept. 30, 2015.

But the council also learned the city will need an additional $622,035 to complete the project. City Manager Robert Garza and Public Works Director Mike Johnson said there are options to consider that could make up that difference.

"The council will have an April 11 work session on capital improvements, downtown Main Street is one of those items," Garza said. "At that time, the council will be able to discuss and identify a strategy. Funding to offset that projected shortfall could come from several options. The council could look at money from the downtown TIDD (tax increment development district), the city's flood control fund, or even the street maintenance fund. Any one or a combination of those funds are something that could be looked at."

Johnson said it's "very likely" that any or all of those three funds could be used. He also said the projected shortfall could end up being less than anticipated.

"A

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lot of city projects are starting to come in 15 to 20 percent under the estimated bid price," Johnson said. "That, alone, would obviously save the city some money if that happens. We could also look at budgeted funds for the project, and look at the city doing some value engineering as an aspect of the project. There definitely are options that could make this work."

Garza said construction to reopen the north end of Main Street, from Las Cruces Avenue north to Mountain Avenue, is progressing at a good pace. That project could be substantially completed sometime between August and October, and city officials believe construction along the southern end of Main Street could begin this fall.

Steve Ramirez can be reached at (575) 541-5452

In other action

• The city council recognized and presented certificates of achievement to the O-ate High School boy's basketball team, Mayfield High School girls basketball team, and Mesilla Valley Christian Schools boy's basketball team for winning state championships.

• Approved a resolution allowing city transit administrators to apply for $617,500 in Federal Transit Administration funds that could be used for architectural and engineering design of a proposed city transit maintenance and operations facility, that would be built on Motel Boulevard.

• Approved a resolution allowing city transit administrators to apply for $394,000 in Federal Transit Administration funds that would be used for the construction of a transportation intermodal center at the southwest corner of Alameda Boulevard and Lohman Avenue.