The Town of Normal has come to agreement with a second developer to build the long-awaited Uptown underpass project, pending council approval.
The town council on Monday will consider a $33.9 million contract with Peoria-based P.J. Hoerr to build the underpass. That’s higher than the $32 million price tag the council narrowly approved last November, and slightly higher than the $33.7 price Public Works Director Ryan Otto said in March was a “draft number” P.J. Hoerr had submitted.
The original contractor, Millstone-Weber, withdrew from the project, saying it could not meet the requirements and construction timeline.
Town staff say the total project cost is $42.8 million, with a bulk of that coming from state and federal grants. The town’s cost would remain $14.9 million, which has not changed due to additional Illinois Department of Transportation funding.
The town is taking on $12 million in debt, which it would pay off through increases in the hotel-motel tax — from 6% to 8% — and the food and beverage tax, from 2% to 2.25%. Those higher rates went into effect April 1.
The town has the remaining $2.9 million set aside from general fund revenue, according to town finance director Andrew Huhn.
The underpass would connect the north and south passenger platforms for Amtrak passengers and be accessible for pedestrians and cyclists using Constitution Trail. Town officials say the underpass under the Union Pacific Railroad lines would promote economic development south of the tracks.
City Manager Pam Reece has said the council will decide whether to keep the local tax increases intact if the council decided not to proceed with the underpass project. She said the town could redirect that funding to other capital projects.
The tax hikes, which are scheduled to sunset after 25 years, would generate up to $1 million per year.
If approved, construction of the underpass is expected to begin in June or July, with completion scheduled for June 1, 2028.
The town is required to have all federal BUILD grant funds, totaling $16.1 million, spent by September 2027.
Also Monday, the council is scheduled to vote on a $225,000 utility agreement with Lumen Technologies to temporarily relocate its telecommunication line with Union Pacific Railroad’s right-of-way to accommodate underpass construction.
