Franklin finance committee weighs accelerated Drexel Avenue rebuild as Costco nears
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Summary
City staff told the finance committee that Drexel Avenue reconstruction is estimated at about $4.5 million, that a DOT grant application faces long odds and would likely delay construction until 2029, and asked whether the city should pursue accelerated local funding to align the work with nearby Costco’s opening.
The Franklin City Finance Committee heard on the projected cost and timing of reconstructing Drexel Avenue and the trade-offs of pursuing state grant funding versus local financing.
Staff engineer (speaker 3) told the committee the roadway sits on poor soils and wetlands, making it an expensive rebuild; the estimated design-and-construction cost is about $4.5 million. “We did apply for a grama, SDP grant,” the engineer said, but added the city’s chances are slim and, if awarded, DOT timing would likely push the project into 2029 — three years after the nearby Costco is expected to open. “If we do get the grants, wonderful news, but the project will not be built until '29,” the engineer said.
Committee members and staff discussed funding splits and responsibilities. The engineer said DOT-required plan specifications and timing create uncertainty for a project the city would prefer to complete before the big retail opening. The meeting record indicates signal work related to the Costco site would be paid for by Costco but owned and maintained by the city.
Danielle (staff) said the council has approved moving forward with engineering for Drexel and that staff are evaluating whether to use internal funds, impact fees or to wait for a planned borrowing later in 2026. She summarized the capital requests in the 2026 plan and said the city is weighing single versus multiple borrowings and the arbitrage risks tied to timing.
The committee did not take formal direction to borrow immediately; staff said they will return with refined scenarios from the city’s financial advisor to show timing, term options and tax impacts.
The committee approved the meeting minutes and later adjourned; no vote on Drexel funding occurred during this session.