WATERLOO, Iowa (AP) — Officials say Waterloo has tentatively agreed to receive $28 million from the state in exchange for taking jurisdiction over a main thoroughfare and using the money to rebuild the road.

The Department of Transportation plans to make the payment and turn over control of a 2.8 mile stretch of University Avenue from U.S. Highway 63 to the Cedar Falls city limits.

Mayor Quentin Hart says he wishes the state payment was higher but that Waterloo needs to move ahead on improvements to the road.

Pete Hjelmstad, of the Department of Transportation, says the city and highway commission still must approve the deal.

In 2014, the agency paid $20 million to Cedar Falls to take over its segment of University Avenue.

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