Normal staff present revised underpass design, $12 million financing plan to finish project

Normal town staff presented an informational update Oct. 29 on a decade‑long effort to build a grade‑separated underpass connecting Uptown North and Uptown South, saying design changes and a second round of bids reduced construction cost but left a local funding gap that staff proposes to close with debt and small tax increases.

The presentation, led by Mr. Otto (town project staff) and finance remarks by Mr. Hune (town finance staff), laid out project goals — a safe, ADA‑compliant separated crossing for pedestrians and bicyclists, improved access to the south Amtrak platform, and a connector to promote mixed‑use development on Uptown South — and summarized federal and state approvals and the recent procurement history. "The project team tonight is pleased to provide this update to council," Mr. Otto said as he introduced goals and recent milestones.

Why it matters: staff said the at‑grade crossing previously used by trail and station users is no longer viable where high‑speed and freight traffic operate, creating frequent blocked crossings and unsafe behavior. Staff said the underpass is intended to reduce those safety risks and to unlock about eight acres for potential infill development in Uptown South.

What changed and what it will cost: staff told council that the November 2024 bid opening produced two bids with a low bid of about $35,160,000. A value‑engineering review reduced scope and material costs (for example, replacing most pavers with buff‑colored concrete, substituting cast‑in‑place seating for exterior limestone, reducing the South Plaza footprint and eliminating a stair along the tracks, and simplifying lighting). After bidders submitted revised prices, Millstone Webber submitted the low revised bid at $32,064,300. The total project budget staff showed on the slide deck includes design, utility relocation, construction engineering and other costs, and totals about $40.3 million.

Funding and gap: staff listed the proposed funding package as roughly $16,160,000 from the federal BUILD grant, $3,000,000 from Section 130 federal funding, $6,250,000 from Rebuild Illinois/ICC‑obligated funds and the remainder from the Town of Normal (about $14.9 million). Mr. Hune said that leaves an estimated $12,000,000 local funding gap to complete the project.

Proposed financing and revenue: to close the gap staff proposed a $12,000,000 general obligation bond with a 25‑year maturity and an expected closing in April 2026. Mr. Hune presented an estimated annual debt service payment of about $870,000 and proposed two tax adjustments to pay it: raising the food‑and‑beverage tax from 2.0% to 2.25% (estimated $440,000 annually) and increasing the hotel‑motel tax from 6% to 8% (estimated $580,000 annually). Staff estimated the combined additional revenue at about $1,020,000 annually and said that implies a coverage ratio of roughly 1.17 versus a typical minimum planning target of 1.2.

Schedule and federal deadline: staff said the town would like to start construction in November (contract award pending) with substantial completion targeted for June 1, 2027 and about 18 months of construction. They cautioned that the federal BUILD grant must be expended by Sept. 30, 2027, a deadline staff described as non‑negotiable and a driver of schedule urgency.

Operations, maintenance and safety: Public Works staff said the underpass structure is designed for a 75–100 year lifespan, drainage will be handled by a lift station on the southeast corner of the station, and lighting plus provisions for security cameras are included; staff also said they would not allow loitering in the underpass. Councilmembers asked detailed questions about winter maintenance, surface abrasiveness given the move from pavers to concrete, and whether the design would encourage unintended informal paths; staff said the gradients meet ADA guidelines and that tree planting and retaining walls were preserved to limit informal shortcuts.

Economic impact and development prospects: Economic development staff described one‑time construction impacts of roughly 186 temporary full‑time equivalent jobs and an estimated $19.4 million direct contribution to the local economy during construction. They characterized the underpass as a catalyst that could enable mixed‑use development in Uptown South but said specific developer proposals have not yet been submitted and that the long‑term economic impacts depend on future development choices.

Questions and next steps: council members asked for additional detail on funds spent to date, timing and market risk for the bond issue, options to bundle refunding of callable bonds, and whether tax increases could be structured to sunset. Staff said additional documentation (detailed cost‑to‑date and the presentation slides) will be provided and noted that a final decision to move forward would require council action at a later public meeting. No formal motions or votes occurred at the work session.

The project team emphasized tradeoffs between design features and cost: "We did not want to sacrifice any of the project objectives or functionality of the project," Mr. Otto said, while noting several design elements were scaled back to reduce the contract price. Council discussion focused on schedule risk tied to railroad construction windows and the BUILD grant expiration, the size and structure of the proposed bond, and maintenance and safety provisions for the finished underpass.