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Council directs staff to continue negotiating Market Street transfer terms with DOT
Summary
City staff asked for direction on a possible transfer of jurisdiction for Highway 63 (Market Street) from the Iowa DOT; DOT initially offered about $560,000 per mile and staff's reconstruction estimate was $7.2 million; council asked staff to pursue negotiations and consider an inflation/escalator clause.
City staff briefed the council on a pending Iowa Department of Transportation (DOT) proposal to transfer Market Street (Highway 63) to the city after construction of the Northwest Bypass. The DOT’s preliminary figure for the 1.6-mile segment was $896,000 (about $560,000 per mile), while a city-commissioned reconstruction estimate prepared by Gardner & Associates came to about $7.2 million for the full 3.2-mile Market Street corridor.
Staff said the DOT has since signaled willingness to revise its calculation to better reflect city costs (discussion figures included $816,000 per mile for some segments and an approximate aggregate offer near $3.92 million). Staff recommended council provide negotiation guidance and said any transfer would add roughly 3.2 miles (about 5%) to the city’s street inventory and related maintenance responsibilities.
Council members stressed the importance of ensuring any DOT payment account for likely inflation and the multi-year timeline for reconstruction. One councilor suggested staff ask the DOT for an escalator or inflation adjustment because construction costs could grow before the city begins major reconstruction. Staff indicated the DOT might pay a lump sum when the jurisdiction transfers and suggested how those dollars should be earmarked for Market Street work. The council asked staff to continue negotiations with the DOT and bring any formal offer back for council approval.
What’s next: staff will pursue negotiations with DOT and return to council with formal offers and recommended terms, including possible inflation adjustments and staged work plans.
