KEENE, N.H. (MyKeeneNow) — Keene Public Works Director Don Lussier was Tuesday’s guest on Good Morning with Dan Mitchell on WKBK Radio, where he walked listeners through the latest developments surrounding the downtown reconstruction project and explained why City staff are recommending significant changes before rebidding the work.

Lussier was invited on the program following last week’s Municipal Services, Facilities and Infrastructure (MSFI) Committee meeting, where he presented options to reduce costs after construction bids came in far higher than expected. Only two bids were submitted, both well outside the city’s budget of $19 million.

During the interview, Lussier said city staff reached out to both bidders and other contractors who reviewed the project but chose not to bid. A key issue, he explained, was the project’s two-year construction schedule, which many regional contractors said required more equipment, staffing, and overtime than they could manage.

As a result, staff are now recommending reverting the project back to a three-year timeline, a move Lussier said should attract more bidders, especially local contractors, and reduce pricing that reflected overtime, staffing pressures, and potential penalties for delays.

If approved by City Council in early February, revised bid documents could be advertised by the end of the month, with bids returned by late March. That timeline could still allow construction to begin in 2026, avoiding further cost increases tied to inflation.

Lussier emphasized that the city is not proposing a full redesign of downtown, which has been in development since 2017. Instead, the recommended changes focus on material and construction adjustments that would not significantly alter the look of downtown, such as modifying drainage structures and reducing the use of specialty concrete finishes. Those changes could save more than $2.3 million.

Additional savings would come from eliminating some aesthetic features entirely, including lighted bollards and granite seat walls, while deferring other elements—such as benches, bike racks, decorative lighting, and a new fountain in Central Square—to be completed later through city staff or separate contracts.

Lussier also addressed one of the most debated aspects of the project: raised bike lanes. He told Mitchell that removing the bike lanes altogether would save only about $42,000, a small amount compared to the overall project cost. Instead, the city opted for a more cost-effective exposed-aggregate concrete finish rather than expensive dyed concrete.

To help close the remaining funding gap, the city is proposing to reallocate about $2.7 million from planned 2026 and 2027 paving projects, pushing those road improvements back two years. Lussier acknowledged the delay is not ideal but said it would allow the Main Street project to move forward without raising taxes. Projects already under contract, such as Marlborough Street, would not be affected.

Lussier said the revised total project cost is now estimated at about $23 million. Combined with savings and funding reallocations, the city believes it can align the project budget with expected bids. He also noted the importance of moving forward to avoid jeopardizing more than $2 million in previously awarded state infrastructure funding.

City Council is expected to take up the MSFI recommendations at its next meeting in early February.

Listen to the full interview: