The city has asked for an appraisal and environmental survey on property at 2nd and Walnut Avenues in anticipation of building a multilevel parking facility there.
Construction likely would occur next year after the city has acquired the property and officials are assured they are not buying an environmental liability.
The vacant parcel is part of a larger property owned by Mobil Oil on which the company operated a service station for more than 50 years.
Contamination from leaky underground gasoline tanks was discovered three years ago at the former station site at 4th Avenue and Main Street, and Mobil has been cleaning up the mess.
Robert Hupp, the city’s director of planning and development, said $343,000 has been budgeted this year to acquire property and pay for engineering and designs.
The money is being reimbursed to St. Charles from the Illinois Department of Transportation to compensate for parking spaces that will be lost when the state rebuilds Main Street.