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Signal Mountain council weighs options after TDOT cites $563,839 sidewalk shortfall
Summary
Town staff told the council that Tennessee Department of Transportation cost estimates leave a $563,839 gap on a long-delayed sidewalk grant; councilors asked staff to produce alternative paths — including MPO match requests, in-house work using ARPA funds, or abandoning the grant — and to return with cost and timeline analyses in March.
The Signal Mountain Town Council on Monday confronted a sudden $563,839 funding shortfall for a long‑running sidewalk project funded through a Tennessee Department of Transportation (TDOT) grant, and asked staff to return with a set of concrete options and cost analyses.
Town staff said TDOT’s most recent construction estimate is higher than earlier figures and that, under current contract terms, the town must identify the shortfall or risk redesign costs falling fully on the municipality. Public works director Wesley Stokes (introduced to the council earlier in the meeting) told council members that TDOT estimates are based on the plans the agency was provided and that supplemental redesigns typically are not covered under the original 80/20 agreement.
Council members pressed staff on three immediate choices: try to secure regional MPO/TPO (transportation planning) funding or other matching funds; break scope out of the TDOT grant and complete parts of the work in‑house (potentially using ARPA funds); or abandon the grant and repay previously received reimbursements. Mayor Elizabeth Baker said she understood staff’s estimate that abandoning the grant could trigger a repayment obligation, but she and other councilors asked staff to clarify the exact years and amounts spent that would be subject to repayment.
Several members described long delays dating to the project’s 2012 presentation to TDOT and a 2014 contract execution. Councilors said repeated pauses and multiple plan revisions have increased costs; staff said right‑of‑way acquisition could take about a year given the revised, smaller scope, and cautioned that TDOT or the Federal Highway Administration could withdraw funding if the project shows no activity.
Council discussion also raised the practical problem that TDOT often requests new plans when scope changes, which would re‑start engineering work and add fees. Some councilors urged pressing TDOT and the MPO and using the town’s contacts to seek exceptions or expedited treatment. A number of members suggested preparing several alternate paths (terminate the grant; pursue MPO match; do targeted in‑house construction; hybrid approaches), with clear cost, risk and timeline estimates for each.
What happens next: Council asked staff to return in March with 2–4 alternatives, associated costs (including a suggested net‑present‑value comparison), timelines and risk assessments, and to pursue MPO/TDOT contacts in the meantime. Staff also noted the town currently has ARPA sidewalk funds that remain underspent and that council needs to consider deadlines for those funds.
The report in March will give council the factual basis to decide whether to commit town funds, revise scope again, or terminate the TDOT contract.
