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Officials weigh options after Chapel Lane bridge fails to win 2026 state grant
Summary
Staff told the committee the Chapel Lane bridge serves more than 500 properties and the city missed a 2026 SD DOT replacement grant; staff plans to increase the city match and pursue other funding while preparing site work so construction can begin when money is secured.
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City engineering staff told the Legal and Finance Committee on April 15 that the Chapel Lane bridge — a single access point for more than 500 properties — remains a top priority but was not selected for 2026 bridge replacement grants administered by the South Dakota Department of Transportation.
Engineer Sarah Aden said the city’s application scored well but the lack of bid-ready plans at the time of submission (delays tied to federal permitting) and stronger applications statewide left Chapel Lane outside the 10 funded projects from 57 applicants. Aden said the city has since obtained required permits and will increase the local match from 20% to 30% to strengthen its next application.
Aden estimated full city funding for a replacement would be about $8,000,000 and would require deferring street rehabilitation projects for roughly two years. Daniel, the city finance officer, flagged alternatives: bonding or a loan could spread payments but still draw on CIP funds long-term; a special assessment would be roughly $65,000 per household served and thus not feasible for this community; delaying one year to pursue DOT/gas-tax-funded support appears a prudent option to avoid deep, immediate CIP impact.
Councilors supported continuing to pursue grants while keeping backup options in view. Staff said site preparation and outreach to affected residents are under way and that phased construction could replace the west side first while traffic uses the structurally sound east side.
Why it matters: the bridge provides sole access for a neighborhood and the funding choice will affect the city’s capital-improvement program and other street projects.
What’s next: staff will pursue the next DOT funding cycle with improved bid-ready plans and a higher local match and will continue exploring alternate funding sources; the committee formally acknowledged the update.

