Questions on the project’s estimated final delivery date have been around long before construction even began, and now it seems the completion date hinges on the outcome of those grant funding applications.
For now, the current phase of the project–the Juneau Creek Bridge–is funded following the $151 million contract award to QAP in Nov. 2023. Once the Juneau Creek Bridge is completed, however, that’s where the money origins become a question mark. According to DOT officials, the project will continue regardless, but who exactly is footing the bill will determine the pace at which construction continues.
“If the discretionary funds come through, then we don’t have to draw from other areas,” said DOT legislative liaison, Andy Mills, in a call with KSRM. “If not, then we will have to draw from other places to keep that project moving. It just will not be at the same speed it was originally planned for.”
In July the DOT announced it would begin exploring “discretionary grant opportunities and innovative financing” as alternative means of funding for the bypass. At that time, DOT Director of Communications, Shannon McCarthy, explained the sort of grants to which this referred;
“One of the [grants] that we’re interested in competing for with this project is what they call a ‘Mega Project.’ So, these [are for] really large projects that are difficult to finance, they spread over many years, which is exactly the scenario we’re talking about. We’ll go ahead and try to secure funding through that program. And if there are other eligibilities that we can go after, we’ll do that too.”
Again, that was in July. So, where are things now? According to McCarthy, word from the Federal Highway Administration on grant awards is expected in the first quarter of 2024. If the state is awarded funding for the bypass, construction would continue “concurrently”–i.e. multiple portions being built simultaneously–which would significantly shorten the time to completion. Conversely, if discretionary grant funds do not come to the $500 million rescue, that would most likely leave the project’s remaining funding to budget draws.
This potential outcome has led to speculation that the project would cease construction until grant funding could be secured, or in a word, “shelved.”
Andy Mills said definitively that “shelving” the bypass at that time–leaving a lonely $200 million Juneau Creek Bridge in the middle of nowhere–would not be the case. “What we need to do is identify what funding sources will take care of each phase as we get it done. So shelved is not even close to accurate. There is a plan to continue to do that project in phases until it’s completed”
According to Shannon McCarthy, a reversion to budget draws for financing would result in the project continuing “consecutively,” or one piece at a time. This would more than likely push the bypass’s completion date out to 2029 or beyond.
It is important to note here that in the absence of discretionary grant funding, the $840 million price tag would remain, and that budget draws ultimately mean that the bill would fall on the state, i.e. its taxpayers. The July DOT press release sums this up stating, “As the State works to resolve the shortfall in the near term, the 2024-2027 Statewide Transportation Improvement Program (STIP) and the FY25 Capital Budget will reflect project needs over the next four years.”
Regarding the decision to construct the Juneau Creek Bridge, which is in the middle of the project, rather than begin construction at one end and build the bridge when the road reaches that point, McCarthy says that comes down to inflationary impact and the cost of construction materials, specifically: steel. “Because the bridge is fairly complicated and requires a lot of steel, it makes more sense to build it now while inflation will continue to impact the project.”
Construction of the bypass will resume roughly in April with the beginning of Alaska’s road construction season.
For Cooper Landing Bypass updates, visit the project’s online open house archive sterlinghighwayonline.net.
*Featured photo courtesy of sterlinghighwayonline.net