KEENE, N.H. (MyKeeneNow) Keene’s Finance, Organization, and Personnel Committee (FOP) unanimously voted 5-0 on Thursday to recommend postponing Keene’s downtown infrastructure project until 2026. The recommendation, aimed at securing federal funding and minimizing disruptions to local businesses, will go before the full city council for a final decision during tomorrow’s meeting.

City Manager Elizabeth Dragon presented the case for delaying the $17.4 million project, citing concerns from downtown businesses and the potential opportunity to secure federal funding through a RAISE (Rebuilding American Infrastructure with Sustainability and Equity) grant. The city’s initial application for the grant was denied last year, but Dragon expressed optimism that with finalized project plans and additional congressional support, the city could have a stronger chance of obtaining millions of dollars in federal aid.

With the project design now complete, a more competitive application can be submitted, Dragon explained. Delaying until 2026, she went on, would also provide more time to collaborate with contractors and ensure better communication with businesses and residents.

Business and Council Perspectives

Councilor Randy Filiault, who originally proposed the delay on behalf of concerned downtown merchants, emphasized the financial risks and operational challenges posed by the project. This project will significantly impact downtown businesses for up to three years, Filiault said, adding that the impact needs to be minimized and as much additional funding secured as possible to reduce the taxpayer burden.

Several local business owners voiced support for the delay, citing concerns over how prolonged construction could affect foot traffic and revenue. Beth Doyle, owner of Moe’s, shared her perspective, noting that while businesses have been aware of the project for years, consistent communication about the timeline and scope has been lacking. A one-year delay would allow business owners to prepare and strategize, she said.

However, not all were in favor of postponement. Jared Goodell, a local business owner, urged the committee to proceed as planned, warning that further delays could increase costs due to inflation. The project addresses critical infrastructure needs, he said, adding that every taxpayer in Keene is counting on the City Council to act in a timely manner to avoid even higher expenses.

Funding and Legislative Support

In addition to preparing a revised bid timeline, city staff will reapply for the RAISE grant, with applications due by the end of January. Dragon noted that securing congressional support is crucial to the grant’s success. “We’ve already engaged with Senator Jeanne Shaheen’s office, and we will reach out to Senator Maggie Hassan’s office as well,” she said. “Having strong backing from our congressional delegation is a critical component of the process.”

Pam Slack, representing Senator Shaheen’s office, assured the committee of the senator’s support, stating, “Given the uncertainties surrounding federal funding and construction costs, delaying the project is a prudent decision.”

Concerns Over Rising Costs

Despite the potential benefits of delaying, some councilors and residents expressed concerns about escalating construction costs. Councilor Roberts reluctantly supported the delay but warned of potential financial risks. The risk of rising costs needs to be weighted, he explained, against the opportunity for federal funding. This may not be an easy decision, he went on, but it’s the responsible one.

Jim Sterling, a local business owner, questioned whether delaying would truly protect businesses from hardship. He pointed to past infrastructure projects, such as the roundabout construction on Island and Winchester Streets, where businesses managed to survive despite prolonged disruption.

Next Steps

If the City Council approves the recommendation, officials will proceed with a revised timeline, aiming to issue a bid in fall 2025 and begin construction in 2026. The additional time will be used to enhance communication with downtown stakeholders and finalize grant applications.

Councilor Filiault, speaking on WKBK radio Friday morning, reiterated the importance of the delay. This isn’t about stopping the project but about doing it right, he said, adding that there’s a real chance to save millions of dollars and support local businesses during a challenging period.

The final decision will be made during the full City Council meeting tomorrow at City Hall Council Chambers, starting at 7 p.m.