The Uptown underpass project, first proposed 10 years ago, was narrowly approved Monday night by the Normal Town Council with a sunset provision on tax increases needed to complete financing.
Each motion related to the project, including the $32 million construction cost, was approved with a tiebreaking vote from Mayor Chris Koos. Council members Kathleen Lorenz, Andy Byars and Scott Preston voted "no" each time, while members Kevin McCarthy, Karyn Smith and Rory Roberge voted "yes."
Aside from the cost of the project rising by $12 million over a previous estimate, several council members expressed concern about the limited amount of time the public was given between a work session last week and Monday’s vote.
“That is not usually our methodology or the way we approach it, but we're constrained on this, and we have no choice but to move quickly or walk away,” said Koos, explaining the town faces a tight timeline of September 2027 to use grant funding for the project.
Koos, City Manager Pam Reece and Public Works Director Ryan Otto all agreed contractors would likely need to rebid projects again if the initiative was delayed further.
“If we wait too much longer, then we will run into cost increases based on the unknowns of construction prices right now,” said Reece.
The underpass will run under the railroad tracks, connecting Mark R. Peterson Plaza with the proposed Uptown South development area.
A motion from council member Karyn Smith for a sunset on the tax increases after 25 years passed, meaning they would expire at the same time as the $12 million bond issue.
As approved by the council, the rate for the hotel-motel tax will increase on April 1, 2026 from 6% to 8%, and the food and beverage tax from 2% to 2.25% With the sunset provision, the rates will revert to the lower figures in 2051.
The town has continued to seek more funding and has secured extensions on deadlines to spend grants already awarded. Before project bidding last year, the total project cost was estimated at $28 million. The town portion of that would have been $2.9 million. Now, with a $40.3 million cost, the town share rises to roughly $14.9 million — or $12 million more than originally estimated.
The tax rate hikes are needed to raise enough revenue to cover the debt on that $12 million. The estimated annual payment on the bonds is roughly $875,000, according to the town.
On Monday, a motion from Byars to table all the motions related to the project failed, with a Koos breaking the tie.
During discussion, Smith disagreed with comments from Preston suggesting that federal money set aside to put toward the underpass may be better spent in other ways that still address public safety in the town.
Smith said the conversation felt similar to discussions as the Constitution Trail took shape across Bloomington-Normal.
“We found that out with COVID,” said Smith. “And the Constitution Trail that had been reviled when it was first imagined, it became a valuable resource because it provided the opportunity to get out and exercise and respect the concerns about keeping distance.”
Smith said she thinks the underpass also can be of value, both to residents with mobility concerns and to those who want more space to possibly expand events held in Uptown throughout the year.
“I think this underpass represents something that will provide that to us. It is not just a tunnel,” said Smith.
Preston took exception to Smith’s comments, stating they had nothing to do with the severity of needs for Normal residents with mobility difficulties.He also made it clear the town was under no obligation to proceed.
“One of the assumptions on this underpass project is that Normal is somehow legally required to build an underpass or an overpass,” said Preston. “It is not.”
The council chamber was nearly filled with union workers, business owners and other community representatives. The 10 public commenters were evenly split on the project.
Many of the previously stated arguments in favor the underpass, including unsafe train crossings and and previous successful investments in Uptown, again arose during public comment.
Others spoke against the measures, citing opposition to additional taxes and the rushed feeling of the tax hike plan.
Chad Pacey, president of the Normal Firefighters Local 2442, spoke on behalf of firefighters, saying the underpass project would divert too much money from other town safety needs.
Other business
In other business, the council approved:
- A $1.4 million contract to rehabilitate the Ironwood Pump Station. The 36-year-old pump station for sewage processing is in need of work on wet well, plumbing, electrical and interior infrastructure. Completion is projected for fall 2026.
- A $109,900 contract with Applied Research Associates, Inc. to assess a pavement condition rating for all town streets. ARA previously did the same in 2020.
