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Homewood Council approves agreement with ALDOT to pursue Lakeshore Parkway/I‑65 interchange despite cost concerns

3027383 · April 17, 2025
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Summary

The Homewood City Council voted 9-0 to approve a new agreement with the Alabama Department of Transportation to pursue a diverging-diamond interchange at the Lakeshore Parkway/I‑65 interchange, while several council members said they worry the city could be left responsible for overruns above a $23 million baseline.

The Homewood City Council voted unanimously April 14 to approve a new agreement with the Alabama Department of Transportation to pursue design, bidding and potential construction of a diverging-diamond interchange at the Lakeshore Parkway/I‑65 interchange.

Council members and staff said the vote clears the way for ALDOT to put the project out for bid, a step city officials said is time-sensitive because the agency hopes to let the contract by July.

Council members who spoke in debate said they support the concept but expressed reservations about the city’s exposure to cost overruns. "This agreement does something that I don't feel comfortable with in terms of the fact that I'm not gonna be here, most likely, when this project takes place," said Councilor Smith. "By the fact that, in this contract, the city of Homewood bears the entire cost of overages of everything over $23,000,000 ... I don't think we should either." Councilor Aleman and other members said they also worried about the lack of control over construction-phase expenses if bids exceed current estimates.

City staff and the council president said the vote is a procedural step that will allow the project to advance to the bidding stage; the council retained the option to authorize construction after bids are received. City staff said the council will be asked to authorize construction later, once a bid result is known.

The motion to approve the agreement passed 9 to 0 (Resolution 25‑56). During the discussion council members asked staff and the city attorney about contractual exit points and whether the council could decline construction authorization after a high bid; staff said there are procedural points at which the council can choose not to authorize construction, but several councilors said they want clearer cost-sharing language before authorizing work if bids exceed the contract baseline.

Council members urged staff to continue negotiating with ALDOT on overage protections and to return to the council with recommendations if the bid comes in higher than expected.

The council did not amend or change the ALDOT agreement on the floor; approval simply advanced the city into the next stage of the state-led project.

Resolution 25‑56 passed by voice and roll-call vote 9 to 0. The council president said the city and ALDOT will proceed with the procurement timeline in hopes of receiving bids this summer.