Making room for the new Cedar Avenue Busway buses, the Minnesota Valley Transit Authority will spend $6.6 million to expand the Eagan Bus Garage at 3600 Blackhawk Road.
Seven new buses have been purchased for first-phase service on the $112 million busway set to open in May or June.
The garage addition will be finished in the spring of 2014.
The bigger garage will have space for 40 more buses — it has space for 60 now — and for three more maintenance bays in addition to the existing eight.
Employee parking will be expanded from 79 spaces to 137.
Minnesota Valley buses serve Eagan, Burnsville, Savage, Apple Valley and Rosemount.
Initially busway buses will travel between Apple Valley and Bloomington. In a later phase, the southernmost stop will be Lakeville.
MVTA Board Chairman Gary Hansen said one key to the success of the busway will be giving the buses quick access to a stop in Eagan at Cedar Grove, where a new outlet mall is planned.