Consultants tell Lebanon council State Route 39 reconstruction could cost more than $138 million; federal aid seen as essential

Greg Parks, a longtime Lebanon resident and consultant, told the City Council on Dec. 8 that a detailed study of State Route 39 found extensive pavement deterioration, pedestrian gaps and several crash hotspots and projected significant congestion at multiple intersections by 2050. Parks said the corridor was divided into six character zones and that intersection improvements — including single‑ and multi‑lane roundabouts at key locations — would be central to reducing crashes and congestion.

Parks summarized technical work including four years of crash data, a pavement survey using an in‑house AI tool, and travel‑demand modeling. He identified intersections and segments with the greatest needs — naming Birchwood, Camp, Noble, Elm and Anderson as priority intersections and pointing to the commercial five‑lane section near Walmart as a high‑risk area.

The study provides cost scenarios. Parks said a full reconstruction — rebuilding the entire six‑mile corridor, modifying right of way, relocating utilities and building intersection roundabouts — is estimated at about $138,000,000 in 2025 dollars. He added that phasing and inflation would increase the 20‑year program cost: "your reconstruction … your cost goes from $1.38 to about $215,000,000" in longer scenarios. A reduced alternative focused on intersection upgrades and structural overlay outside intersections is estimated at roughly $55,000,000 today, rising with inflation to an estimated mid‑tens of millions more over time.

City staff and council asked whether INDOT would provide the local match on federal grants under an 80/20 federal aid program. Parks and Bill Smith of INDOT said funding and match arrangements would be negotiated and that the projects would likely be pursued through annual federal aid calls over multiple years beginning in the 2031 funding round. Smith said that if the state relinquished route control through town the route would remain signed continuous across SR‑47 and I‑65 but would operate as a local street in town.

Parks recommended a staged approach beginning with the southern gateway and critical intersections to build momentum and allow the city to apply annually for federal aid while performing near‑term pavement preservation (an inch‑and‑a‑half mill and resurface plus deep patching) to extend service life until reconstruction is feasible. He emphasized that federal awards and local match decisions will determine what the city can afford and whether relinquishment offers the practical control the city wants.

Next steps discussed at the meeting included city negotiation with INDOT/NDOT and more detailed budgeting for phased grant applications. The council took no formal vote on relinquishment but accepted the study for use in upcoming negotiations.