KEENE, N.H. (MyKeeneNow) After months of design revisions, budget reviews and public debate, the Keene City Council voted Thursday night to move ahead with the long-awaited Downtown Infrastructure Project, awarding a $26.06 million construction contract to Casella Construction and rejecting a last-minute effort to trim additional costs from the plan.

The measure was approved on a 12-2 vote, with Councilors Phil Jones and Randy Filiault casting the only dissenting votes. Councilor Bettina Chadbourne was absent.

The vote followed a lengthy discussion over whether the project should be sent back to the Municipal Services, Facilities and Infrastructure Committee for another review. Councilor Randy Filiault argued that several project elements could still be removed, potentially reducing costs by roughly $1.1 million.

A majority of councilors, however, concluded that further revisions would provide limited savings while risking additional delays to a project many described as essential to replacing aging underground utilities and revitalizing downtown.

Councilor Mitch Greenwald said the city must ensure the final product matches the years of planning and public investment already devoted to the effort.

“Considering the cost and the effort, and what the whole downtown community is going to go through, we must not end up with a mediocre result,” Greenwald said.

Councilor Michelle Chalice noted that the proposal before the council was already significantly scaled back from earlier concepts.

“We started… with a project that was more expansive, more esthetically pleasing, and we really have boiled it down to, I think, what is really necessary to invest in our downtown, and most importantly, fix the pipes that are under Main Street,” Chalice said.

The project is centered on replacing aging water, sewer and stormwater infrastructure beneath Main Street and Central Square while also rebuilding streetscapes, sidewalks and public spaces. City officials have repeatedly cited deteriorating underground utilities and recent water-main failures as evidence that the work can no longer be postponed.

Councilor Laura Tobin acknowledged concerns about cost but said she ultimately supported moving forward after reviewing the information presented by city staff and consultants.

“I really need to learn to trust people and the information they’re giving me,” Tobin said. “When we look at this project, and we think about the wants versus the needs, the frills, I just keep thinking about the spirit of place, and without some of these things to make it special, how that really impacts the entire project.”

Mayor Jay Kahn urged councilors to keep the project’s long-term significance in mind, noting that decisions made now will shape the appearance and function of downtown for decades.

The council ultimately voted to approve the committee recommendation, authorizing City Manager Elizabeth Dragon to execute the contract with Casella Construction. The agreement includes language allowing adjustments to the project scope depending on the final Fiscal Year 2027 budget approved by the council.

Construction is expected to begin in Central Square in mid- to late July, with city officials planning to provide monthly progress updates to the Municipal Services, Facilities and Infrastructure Committee throughout the project.

While the construction contract has now been approved, questions remain about how the city will fund the difference between the accepted bid and the amount currently budgeted. The council referred a separate funding resolution to the Finance, Organization and Personnel Committee, which will review financing options next week.

City officials have said the proposed funding plan is not expected to affect the Fiscal Year 2027 municipal tax rate.

In other business Thursday, the council approved several grant-funded initiatives, including awards supporting community-building programs at the library, bicycle and pedestrian accessibility projects, employee wellness activities, hazardous materials training for firefighters and improvements to the Ashuelot Rail Trail Trestle Bridge. Councilors also received updates on the airport solar project, which remains on schedule for construction to begin later this year pending final permits and utility agreements.