KEENE, N.H. (MyKeeneNow) The Keene City Council on Thursday night approved several cost-cutting changes to the Downtown Infrastructure Improvement and Reconstruction Project after learning the project’s price tag has jumped by about $5 million.

The adjustments include removing Gilbo Avenue and Church Street from the scope of work, reusing existing LED fixtures, limiting the project to two construction seasons instead of three, and bidding spare conduit and handholes as an alternate. City Manager Elizabeth Ferland told councilors the increase stems from multiple factors, while Councilor Randy Filiault sharply criticized project consultant Stantec, saying mistakes on their part contributed to the ballooning costs. Bidding is expected to begin next month, with construction starting in spring.

Beyond budget decisions, councilors heard several matters referred from the Municipal Services, Facilities and Infrastructure (MSFI) Committee. Those included requests to remove a tree on Evergreen Avenue, to install a public art sculpture in Ash Wheeler Park, to place a historic marker for the Keene Bottleworks on the Cheshire Rail Trail, and to formally name the Charles Redfern Bridge in honor of volunteers who helped create the city’s trail system. All were approved with little debate.

But two items sparked lengthy and emotional discussion: the possible sale of a city-owned parcel at 100 Church St., and proposed rules for the city’s new downtown bike lanes.

The Church Street lot has long been a gathering spot but has also drawn complaints of drug use, public urination, and loitering. Paul Rodenhauser, representing abutting property owners, urged the city to sell, calling the site “a nuisance and a problem” for tenants nearby. Others, including one resident, asked councilors to keep the land public, describing it as a “beautiful little piece of green” and warning that selling it would permanently erase a valued community space without solving the underlying social issues. After testimony on both sides, the MSFI Committee voted 4-1 earlier in the week to recommend the sale.

The council also received an update on draft bike lane regulations. Public Works Director Don Lussier outlined provisions requiring cyclists to use racks for parking and setting speed limits. Several downtown merchants, including Ted McGreer, voiced safety concerns about the new raised lanes. Councilor Philio called the rules “completely unenforceable,” saying the short-staffed police department could not realistically monitor cyclists and e-bike users.

Mayor Jay Kahn noted that while the bike lanes are part of the broader downtown reconstruction project, public confidence in the design is fragile. “My concern,” McGreer said, “is that we’ve already lost public support.”

The City Council is expected to revisit both the Church Street property and the bike lane rules in upcoming meetings as the downtown overhaul moves closer to the construction phase.