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Commission presses for clarity as enhancement grant costs rise and tunnel change order appears

Adrian City Commission · January 21, 2026
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Summary

City Administrator Chad Baugh and Lenawee Now representative Pat Farber reviewed the South Main Street pedestrian tunnel change order and the broader enhancement grant program. Staff said change‑order overages will be paid from the enhancement grant (not the city general fund); Pat reported roughly $7.06 million spent to date and described $7.9 million remaining and urged rapid, shovel‑ready projects; commissioners sought clearer budgets, roles and a memorandum of understanding with Lenawee Now and MEDC.

City Administrator Chad Baugh and representatives of Lenawee Now gave an extended briefing on the status of the city’s enhancement grant and the South Main Street pedestrian tunnel, a long‑running project that has generated safety and budget questions.

Baugh told commissioners he signed a change order for tunnel materials that requires roughly an additional $300,000 and said those expenses are expected to be covered by earmarked enhancement grant dollars, not the city’s general fund. He asked the commission for direction on next steps and clearer communication with residents about the…

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