Hampshire postpones downtown streetscape project because of rising construction costs
Less than three months after announcing plans to create a pedestrian-friendly streetscape in downtown Hampshire, village officials voted to postpone the project because of rising construction costs.
The $1 million project, fully funded by a state grant, was scheduled to begin construction in June and finish in September. Hampshire Village Manager Jay Hedges, however, said the three submitted bids exceeded original estimates by hundreds of thousands of dollars.
The decision to postpone was recommended by Hedges and unanimously approved by village trustees at last week's board meeting. The work was slated to be done along State Street between Washington Avenue and Jefferson Street.
"We had targeted that meeting to be where the board would approve one of the bids," Hedges said. "But the options became to either reduce the scope and do a lot less or wait until material costs potentially come down."
Three months ago, village officials estimated construction to cost $868,000, with engineering expenses bringing the total to just over $1 million. Of the three bids opened on June 24, Alliance Contractors came in with the lowest estimate of $1,333,875 - nearly $500,000 more than the original estimate.
Hedges said the bulk of the increase was due to the recent rise in the cost of concrete, steel and lighting materials. He said the village plans to seek updated bids later this year or early next year, with hopes the costs ease.
Hampshire officials needed to submit an eligible plan by December to qualify for the state grant, and they must spend the money by April 30, 2023.
Hedges said it's possible the village could ask for an extension to spend the funds depending on how construction costs fluctuate over the next several months.
About $600,000 of the grant was slated to be used on infrastructure to improve water and sewer systems that date back more than 50 years. Newly paved intersections and crosswalks would clearly define the area with brick pavers. Canopy lighting, landscaping, tree planting and a pedestal clock are also included in the current plan.
The goal is to create a "festival block" where the village can host community events. Hedges said a final decision on the project likely needs to be made next year to meet the 2023 spending deadline.
"We'll continue to monitor different indices and talk to local contractors about what their pricing looks like," Hedges said. "One thing we won't do is add any local money to it. We just don't have the funds."