The U.S. 54 Highway rebuild is back on the table. Having been awarded $4,236,812, the City of Iola received the largest grant in the state this week through the Transportation Alternatives (TA) Program. The program awarded a total $31.5 million for 31 projects in communities across Kansas.
“I was struggling with the project,” admitted Assistant City Administrator Corey Schinstock. “I honestly didn’t think we could have much of a chance of getting any money.”
The announcement comes just in the nick of time, too. In late November 2023, Iola City Council members unanimously declared they would postpone any decision on the rebuild for one year. “Last year was the goal to get started on the project, but the cost of the project was so high that we didn’t feel comfortable bonding it,” noted Schinstock.
The city’s limit on the debt payment is approximately $750,000. With this kind of limit, the project would need to be in the ballpark of $11-$12 million. In 2022, the council pegged the cost for the U.S. 54 Highway rebuild at approximately $13 million. By November 2023, that cost had ballooned to $22.5 million, according to Burns & McDonnell engineers.
“The anticipated bond payments for the increased cost to the project is going to exceed our revenue to pay the bond payment itself,” City Administrator Matt Rehder said at the time.
Schinstock noted that Burns & McDonnell engineers applied for the TA grant on behalf of the city. “We still have a lot to do, but our engineers have been scouring for grants and funding to get that dollar amount down,” he said.
THE GOAL of the TA Program is to create safer, more walkable and bike-friendly routes. Administered by the Kansas Department of Transportation (KDOT) and provided by the Federal Highway Administration, the grant program is currently the primary source of KDOT funding for bicycle and pedestrian projects statewide. The program requires a 20 percent local match of the project cost.
“This grant money can’t be used for the roadway portion of the project,” Schinstock explained. “It will be used for handicap ramps, crossings, signals, and to widen sidewalks.” These items were calculated into the total projected cost of the rebuild.
Schinstock added that the rebuild is referred to as a “road diet,” since it will decrease the number of lanes on 54 Highway going through Iola. “It will take it from four lanes down to three lanes,” he said. “Two lanes — going east and west — and a center lane for turning.” He noted that this will help with the widening of the sidewalks, though not those along the square, which are wide enough.
The project was originally expected to start near State Street on the west and go out as far as the 1800 block of East Street. “That scope will very likely change,” said Schinstock. “One option is to cut off at Kentucky Street, which would trim quite a bit off of the project.” Eliminating improvements east of Kentucky Street could help save an estimated $2,775,000.
AFTER THE injection of the $4.2 million TA grant, as well as any other funding the engineers may find, the remaining cost of the project will fall on the city’s shoulders.
“Whatever that number is, we will bond it,” said Schinstock. “I think the funding is starting to align. Interest rates have also come down a little bit on bonds.” He added that the city already has around $2 million set back specifically for the rebuild project.
Schinstock explained that if the city can’t foot the remaining cost, the $4.2 million grant would have to be returned. “I don’t foresee that happening,” he said.
Since 2019, under the Eisenhower Legacy Transportation Program, KDOT has awarded more than $95 million for 122 TA projects, benefiting both urban and rural communities.
“This investment is more than just improving infrastructure – it’s about strengthening the safety, accessibility, and mobility of our communities,” Governor Laura Kelly said in a press release earlier this week. “I’m pleased the state can offer the support needed to help advance these projects.”
