Normal Council OKs Uptown Underpass Plan, Approves Taxes and $32M Construction Contract After Heated Debate

The Normal Town Council voted to advance the long‑planned Uptown Underpass at Uptown Station, approving a package of linked measures that includes raising the hotel/motel tax from 6% to 8% and the food and beverage tax from 2.00% to 2.25% (with a 25‑year sunset), authorizing up to $12,000,000 in general‑obligation bonds for the town's local share, accepting a modified U.S. Department of Transportation BUILD grant agreement and awarding the construction contract to Millstone Webber LLC for $32,064,300.

The vote followed more than two hours of public comment and an extended council discussion that divided members and residents. Proponents, including labor representatives and several longtime residents, said the underpass will improve safety for pedestrians, bicyclists, and Amtrak users and act as a catalyst for development on roughly eight acres south of the station. Opponents and some business owners warned the town's local costs have ballooned and urged the council to pause and consider lower‑cost alternatives.

Why the council acted now

City Manager Pam Reese and staff told the council that design is complete and that construction bids came back higher than earlier estimates. Staff said value engineering reduced costs but that a funding gap remained. Reese told the council the project has roughly $25,000,000 in combined federal and state grant dollars if the town completes the local funding plan and starts construction on the timetable required by the grant. She and other staff cautioned that further delay risked bidders withdrawing pricing and could jeopardize federally obligated grant dollars.

Public comment and council concerns

A wide range of speakers addressed the council. Patrick Dollard noted the project's long history and the significance of the BUILD grant, saying BUILD stands for “Better Utilizing Investment to Leverage Development.” Mike Kerber, an Uptown user, told council "the tunnel is a great idea" for safety and convenience. Ronnie Paul of Laborers Local 362 urged approval on behalf of union members who would work on the project.

Opposition focused on cost and timing. Renee Bradley asked council not to "put the underpass project on the backs of the local restauranteurs and hoteliers" during uncertain economic times. Matt Sweeney, a business owner, said the local share had risen dramatically from earlier projections, telling council that the town was now looking at a much larger local obligation and urging reconsideration of alternatives such as an at‑grade gated crossing.

Council action and the votes

Council adopted a substitute ordinance that added a sunset provision—the tax increases will revert to prior rates on 03/31/2051—before voting on the tax ordinance. The roll call on the tax ordinance (with the sunset provision) was: McCarthy — yes; Preston — no; Lorenz — no; Byers — no; Roberge — yes; Smith — yes; Coos (Mayor) — yes (4–3). The council then authorized issuance of general obligation bonds (principal not to exceed $12,000,000) to fund the town's share and approved a resolution to execute the modified BUILD grant agreement with USDOT.

Procurement and contracts

Following grant and financing approvals, the council accepted bids and awarded the construction contract to Millstone Webber LLC in the amount of $32,064,300. Council also approved two construction engineering agreements: one with Clark Deats Incorporated for phase 3 construction engineering services and one with WSP USA for construction engineering support; both measures passed on roll calls recorded in the minutes.

Financial specifics and staff estimates

Staff described the project as largely federally and state funded but requiring a local contribution to complete the financing package. During council discussion finance staff said the town planned to borrow $12,000,000 in principal for bonding; estimated annual debt service was presented at roughly $870,000 per year over a 25‑year structure (final rates to be set when bonds are placed). Pam Reese told the council the town currently expects about $25,000,000 in federal and state grant dollars to remain available if the project proceeds under the negotiated schedule.

Next steps and oversight

Council approved associated construction engineering and oversight contracts intended to provide town representation during construction and to help keep the project on schedule. Staff emphasized plans for public updates and web‑based project tracking during construction.

Context and caveats

Council members repeatedly described the vote as difficult and noted the risks: higher costs than originally planned, the possibility of future opportunity costs for other town projects, and the compressed timeline after years of negotiation with Union Pacific, Amtrak, IDOT, the ICC and FRA. Supporters emphasized long‑term quality‑of‑place and economic benefits, while opponents stressed near‑term affordability and public‑safety spending priorities.

Votes at a glance

- Ordinance: increase hotel/motel tax from 6% to 8% and food & beverage tax from 2.00% to 2.25% (with 25‑year sunset) — Approved (4–3). - Ordinance: authorize issuance of general obligation bonds not to exceed $12,000,000 (town local share) — Approved (4–3). - Resolution: execute modified USDOT BUILD grant agreement — Approved. - Resolution: accept bids and award construction contract to Millstone Webber LLC — Approved. - Resolution: engineering services agreement with Clark Deats Inc. (phase 3) — Approved. - Resolution: engineering services agreement with WSP USA (construction support) — Approved.

What the decision means

Approval allows the town to proceed with executing the construction contract and mobilizing work under the federally amended BUILD schedule. Project proponents say the underpass will provide a permanent, ADA‑accessible crossing between Uptown and the south side of the tracks and help unlock redevelopment of land adjacent to the station. Critics said the council accepted significant local financial risk and urged careful attention to public‑safety and capital priorities going forward.

(Reporting note: quotes and figures above are drawn from the council meeting record and public comments.)