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State awards $20 million toward Demers/40 Second underpass; total project now estimated at $90 million
Summary
City and NDDOT reported a $20 million state flex fund award toward the Demers Avenue/40 Second Street underpass; city will shift local and federal funds to close a projected $90 million cost and expects construction bids this fall and two years of construction beginning next year.
The North Dakota Department of Transportation and city staff told the Grand Forks City Council on March 17 that Governor Armstrong’s office committed an additional $20 million in state flex funding for the Demers Avenue and 40 Second Street underpass project, a major infrastructure program the city and DOT have been advancing.
City project manager (presenter) reported the project’s estimated cost has risen to about $90 million, up from earlier estimates. The city plans to shift $8 million of previously allocated funds from a separate 48th Street reconstruction project and add $2 million in city funds to fill gaps, plus the governor’s $20 million, to make the funding package closer to complete. The Federal Railroad Administration (FRA) previously committed roughly $30 million toward the underpass (covering about 50% of earlier cost assumptions); city and DOT staff said they have requested additional FRA support and are in discussions with BNSF Railway on potential contributions (BNSF has offered limited additional funding if the city agrees to certain crossing closures).
Project design is at roughly 90% and staff said they are working to finalize grant agreements, right-of-way acquisitions and utility relocation so the project can be advertised for bids this fall. The project will require additional council actions later this year: a cost participation and maintenance agreement, construction plan approval and (if bids are in range) an award of contract. Construction is anticipated to start in 2026 and last two years, with some final items possibly extending into 2028.
Council members thanked NDDOT and the governor’s office for the state funding. Staff emphasized the remaining steps to finalize FRA grant language and property negotiations with railroads and adjacent property owners prior to executing agreements and starting right-of-way acquisition.
