Строительство улицы Sixth Street в Кенай отложено из-за превышения сметы

Sixth Street project in Kenai delayed after bids come in over budget Published 10:54 am Friday, September 4, 2026 Kenai’s planned Sixth Street road and utility project is on hold after construction bids exceeded the money available for the work. Council members agreed Wednesday, Sept. 2 to indefinitely postpone Resolution 2025-59, which would have awarded a construction contract for the project, city staff said they will instead work with Kenai Peninsula Housing Initiatives Inc. to determine how to move forward while preserving grant funding already secured for the work. Acting City Manager Lee Frey said the project was being coordinated with KPHI, which is developing low-income and senior housing on property near Sixth Street. The city had hoped to begin construction before winter, but the bids received were higher than the project budget. Plans call for extending water and sewer service and constructing Sixth Street within Kenai Meadows Addition No. 2 subdivision. The work advertised by the city also included storm sewer improvements, a temporary gravel road surface, and eventual asphalt paving. Last year, the city council authorized Kenai to apply jointly with KPHI for up to $850,000 through the Community Development Block Grant program. At the time, the total project was estimated to cost about $1.1 million, with KPHI committing to provide the local match necessary to complete it. KPHI’s development is planned for land the city conditionally donated for restricted-income and senior housing. In April 2025, Kenai approved the donation of roughly 5.2 acres near the existing Kenai Meadows development, and later planning documents established new Sixth Street and State Avenue rights-of-way serving the property. City officials have described the infrastructure project as serving both the new housing and potential future development farther north. The CDBG program provides competitive grants of up to $850,000 for projects including public infrastructure benefiting low and moderate-income residents. Bidding opened in August with an original schedule calling for water and sewer work and a passable gravel surface to be completed by Dec. 15. Final paving and road restoration were supposed to be finished by June 30, 2027. Frey told council members that those plans can no longer proceed under the bids received and available budget. “We’re unable to award this at the time,” Frey said. “We are working with KPHI to try and figure out a way to use this grant funds and move forward in the future.” Future options have not yet been identified publicly, but Frey said another proposal will likely return to the council once the city and KPHI have determined how to proceed.