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Eagle River postpones 2026 chip-seal award as state funding for First Street remains pending
Summary
The Common Council voted to delay awarding the city's 2026 chip-seal contract while it awaits a State Municipal Agreement for First Street; council approved a lower-cost milling option for the BMO Bank parking lot and accepted an MSID funding award for McKinley Boulevard.
The Eagle River Common Council on May 12 unanimously postponed awarding the 2026 chip-seal contract so staff can await a State Municipal Agreement (SMA) that would affect the scope and cost of work on First Street.
City Administrator Robin Ginner told the council the city received two chip-seal bids—Fahrner Asphalt Sealers for $112,741.83 and Pitlik & Wick for $120,352.07—against a budget of $86,000. Ginner said the SMA, if received, would remove the block of First Street adjacent to the courthouse from this year's chip-seal project and reduce total cost; the council set a special meeting before the June regular meeting to allow time to receive SMA details before awarding the contract.
The postponement followed an MSA presentation from John Promer on the 2026 street and alley program. Promer presented options and estimates for paving the parking lot behind BMO Bank, with a half-lot estimate of $28,628 and a full-lot estimate of $56,183. Promer also outlined a less expensive option—removing the blacktop, grading, and adding millings—which he estimated at about $5,000 to $10,000. Councilmember Jerry Burkett moved, and Kim Schaffer seconded, a motion to remove the blacktop, grade and add millings to the whole lot; the motion carried unanimously.
Promer also explained that construction on alley projects at Nicolet and the BMO alley will require rerouting alley traffic to exit north toward Wall Street; the council approved temporary rerouting with MSA-provided signage.
Separately, Ginner reported the city received a Municipal Street Improvement District (MSID) funding award of $385,610 to resurface McKinley Boulevard from Railroad to the city terminus. Ginner said an October 2025 estimate for that resurfacing was $771,220 and that the city has until 2031 to complete the work, though staff expect to finish within a couple of years.
What happens next: the council scheduled a special meeting to reconsider chip-seal contract award once the SMA status is known and to confirm how First Street will be funded and scoped.
