WASHINGTON — Plans to build a new Metro station at Potomac Yard in Alexandria, Virginia, took a crucial step forward Tuesday.

Alexandria City Council unanimously approved raising the budget from $268 million to $320 million. The change was made in part to reflect the rising cost of materials and labor.

“We’re coming to the point of a real milestone,” said Alexandria Mayor Allison Silberberg. “Partnering with WMATA and working hand in glove with them is going to be key.”

Bidders on the project were asked to make changes in hopes of cutting costs, and revised proposals were received in February.

As part of the design review process, the city expects to hold public hearings around the end of this year.

Early construction will likely begin around the same time, with the station set to open in late 2021 or early 2022.

WTOP’s Nick Iannelli contributed to this report.