The closure of a portion of an alley is paving the way to a $2.4 million expansion of the Railway Credit Union in Mandan.

Bismarck architect Loren Galpin, president of the Galpin Co., made a request on behalf of the credit union to have the city vacate the west 90 feet of the east 140 feet of the alley located between Main and First streets and Ninth and 10th avenues.

The credit union has an existing building at 1006 E. Main St, and owns adjacent property on the other side of the alley. Plans are to build a three-story commercial building that will attach to its existing structure. Galpin described the structure as a three-story, 15,000-square-foot, state-of-the-art building with glass panels.

There was some opposition to the vacation, according to the planning department's Sarah Baehurst. Most of it involved access and parking availability.

Galpin said all the appropriate zoning for the credit union's commercial building is in place. He said the nearby apartments don't have off-street parking, but shouldn't be parking in the alley and should be parking on the street. He said the vacation will affect the traffic flow, particularly since the Dairy Queen is nearby and its customers use the alley.

DQ owner Mike Wieland agreed there was a traffic flow problem with the alley, but it is due to his business. He supported the credit union's request, knowing that it may bring additional customers to his business.

"Railway Credit Union believes in Mandan, and that's why it's willing to make this investment," Galpin said. "The expansion will provide new jobs and keep the ones already in place."

The project is within Mandan's renaissance zone and will be taking advantage of the tax breaks provided through the program. But Galpin added that, in the long run, the city will greatly benefit from the property taxes coming from the credit union and the people it brings to Mandan.

The credit union will occupy the ground floor of the new building and another Bismarck company will lease the second floor. The credit union will be looking for tenants for the top floor.

Commissioner Tim Helbling made the motion to approve the vacation, and it was approved on a 4-0 vote.

In other business, the Mandan City Commission:

n Approved the purchase of an electronic monument sign that will be constructed at the intersection of Main Street, Memorial Highway and Mandan Avenue.

n Authorized demolition of the Rent-All Building. A plan is in place that will keep the integrity of the wall the building shares with Keller Insurance at 110 Main St.

n Approved a Class A liquor license for McFall Publishing, which is renovating the old Mandan theater building.

(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@bismarcktribune.com.)