The Washington City Council has taken the next step in establishing a new historic preservation district in town.

The council approved an ordinance Monday authorizing a Historic Preservation Fund Grant agreement between the city and the Missouri Department of Natural Resources, Missouri State Parks, Historic Preservation Office.

Last year, the council approved applying for the grant to research and possibly nominate certain property along the Fifth Street corridor and other parts of the city to the National Register of Historic Places.

The grant funds will be administered by the Washington Historic Preservation Commission in partnership with Downtown Washington Inc.

Cost of the program is projected at $25,000 which will be covered by a $15,000 federal grant and a $10,000 local match.

The grant will provide funds to hire a consultant to research a proposed Fifth Street Historic District and make amendments to existing historic districts, according to Bryan Bogue, historic preservation commission chairman.

The Fifth Street corridor would extend from Louis Street to Highway 47, Bogue told the council Monday night. Among other things, it would include the former Busch house which now houses the VFW Post along with individual structures along Lafayette, Oak, Elm, Second, Third and Fourth streets.

Bogue said $10,000 would be allocated this fiscal year and the balance next fiscal year.

Mayor Sandy Lucy said the project ties in with redevelopment efforts along Fifth Street.

The historic district designation protects property and opens up the chances for grants, Bogue said.