KEENE, N.H. (MyKeeneNow) Keene’s Finance, Organization, and Personnel Committee voted unanimously Thursday to recommend postponing the city’s downtown infrastructure project until 2026. The committee’s decision now heads to the full City Council, which will consider the proposal during its meeting next Thursday.

City Manager Elizabeth Dragon presented the case for the delay, explaining that the city intends to reapply for a federal RAISE (Rebuilding American Infrastructure with Sustainability and Equity) grant to help fund the $17.4 million project. Last year, the city’s initial application was denied. Dragon noted that with the project design now finalized, the city has a stronger chance of securing millions in federal funding.

The City Council is working with Senators Jeanne Shaheen and Maggie Hassan to obtain letters of support for the grant application. Dragon said delaying the project would allow time to issue a bid in fall 2025 and begin construction in 2026.

Councilor Randy Filiault, who first proposed the delay about a month and a half ago on behalf of downtown business owners, cited financial concerns and potential disruptions to downtown businesses as key reasons for the postponement in . Becaust the project will have a significant impact on downtown businesses for three years, he said. it needs to be ensured impact is minimized and additional funding secured to reduce the financial burden on taxpayers.”

Several downtown business owners voiced support for the delay, emphasizing the potential hardship a major construction project could pose to their operations. Some noted that a delay would provide additional time to prepare and adjust their business strategies.

The committee’s discussion on Thursday marked the first time it revisited the delay proposal since a Dec. 12 meeting, when councilors decided to take more time to review Filiault’s suggestion. Since then, the city has moved forward with approving final design details for the project, including materials for sidewalks and crosswalks, as well as selections for benches and trash cans.

Despite broad support for the delay among committee members and business owners, concerns remain about rising construction costs. Some residents expressed apprehension about postponing the project, pointing out that inflation could drive up costs significantly if construction is delayed.

Dragon acknowledged there’s always a risk with delays but the potential benefits of securing federal funding and having more time to collaborate with the contractor could outweigh those risks.

The downtown infrastructure project, aimed at replacing aging pipes and updating Main Street, Railroad Square, and Central Square, was initially scheduled to begin this spring. The extensive work includes above-ground improvements such as new sidewalks, crosswalks, and public amenities. The delay would give the city more time to communicate detailed construction plans with businesses and residents.

Councilor Filiault discussed the issue on WKBK radio Friday morning, reiterating the committee’s position and highlighting the importance of pursuing the RAISE grant. He expressed optimism that the full City Council would approve the recommendation next week.

“This delay isn’t about stopping the project; it’s about doing it right,” Filiault said. “We have an opportunity to save millions of dollars and better support our downtown businesses during a challenging period.”

If the council approves the recommendation, city officials will proceed with preparing a new bid timeline and the grant application. Additionally, they plan to increase outreach to merchants and residents to keep them informed about the project’s progress and expected impacts.

The final decision on whether to delay the project will be made during the City Council meeting on Jan. 16, where public input will also be welcomed.