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Franklin City wins 80/20 federal-state STP grant for Drexel Avenue, but construction likely delayed until 2030
Summary
City staff told the board the Surface Transportation Program grant will cover roughly 80% of Drexel Avenue reconstruction, with the city responsible for about $800,000; federal/state requirements and timing likely delay local construction until about 2030, prompting a pivot to other local streets.
Franklin City staff reported on May 12 that the city received a Surface Transportation Program (STP) grant for the planned reconstruction of Drexel Avenue, but they warned the award will likely delay local construction until about 2030.
City engineer Mike Wallace told the board, "we actually did receive the grant. Found out a couple weeks ago." Wallace said the grant is an "80/20 split," and provided staff estimates that the state/federal portion would cover roughly $3.3 million while the local share would be about $800,000. He said the grant brings advantages in funding but also adds more stringent design and timing requirements.
Why it matters: the city had put Drexel out to bid and received competitive bids, including a low bid of $2.1 million, because councilors had wanted the road completed before a nearby Costco opened. Wallace said the award requires the project to move under state/federal administration, which will likely raise design requirements and could increase overall cost. "Because of the grant, we have to wait now till 2030 at the earliest," Wallace said.
Staff outlined the project limits roughly from the 4100 block to 31st Street and noted the grant covers work at the intersection where Costco is planned. Board members asked whether the Costco developer had contractual obligations to the city; staff said there are none.
With Drexel effectively moved onto the STP schedule, staff proposed reallocating the local funds that had been planned for Drexel to another project sooner. Highway superintendent Kevin Schler and others recommended pivoting to reconstruct South 51st Street (from Drexel to Rustin), which staff estimated at $3.3 million to $3.5 million and said could proceed through design and likely reach construction in 2027.
City staff emphasized the next steps: design work tied to the grant will begin in 2027 for Drexel, staff will return with more detailed cost and schedule estimates as design advances, and councilors will consider borrowing and budget timing to cover the local match.
The board took the briefing as information; no formal vote was required on the grant award at this meeting.
