Since late summer, Dynamic Designs at 206 First Ave. has had customers place and pick up orders through its back entrance. A block over, The Yogurt Shop at 105 W. Main has been pointing visitors to its rear parking lot. Neither change was a business decision. Both came after Knife River-Billings told downtown businesses that sidewalks in front of their doors would close completely at times and foot traffic would be rerouted, according to the Laurel Outlook.
Work started Monday, July 27, and the contractor expects to finish by Dec. 1. The Laurel Christmas Stroll is Sunday, Dec. 6. That leaves five days between the target finish and the one evening of the year that puts the biggest crowd downtown, with a lighted parade, fireworks and shoppers going door to door. Whatever the project gets right or wrong, people will see it that night.
What's being torn out and what's going back in
The work covers sidewalk replacement and asphalt repair along Main Street, First Avenue, Second Avenue and W. First Street. The Laurel Urban Renewal Agency, known as LURA, calls it the Downtown Safety Improvement Project. In a July 31 post on the City of Laurel website, LURA listed what's planned:
- Removal of sidewalk trip hazards
- Removal and replacement of dying trees
- Upgraded sidewalks and ADA-accessible pedestrian pathways
- Replaced and repaired curbs and gutters
- Improved storm drainage
- Other changes for safety, accessibility and appearance across the downtown district
Much of the work is underground and won't show when it's done. Storm drainage, service lines and the cuts made to reach them all come before any new concrete. At the Oct. 27 council meeting, city staff said they were considering chip sealing the city street sections that had been dug up "to deal with services, storm drainage, and the likes." The contractor also poured concrete by mistake into areas planned as landscape islands. According to the Oct. 20 workshop record, the contractor will remove and replace that concrete at no extra cost to the city.
Why the bill went up and the budget didn't
Most of the added cost came from Main Street, which is also U.S. Highway 10. The Montana Department of Transportation asked for changes there, and those changes used up most of the project's cushion.
| Item | Amount | When |
|---|---|---|
| Original project estimate | $3 million | At award |
| Built-in contingency | $280,000 | At award |
| Change Order No. 1, for MDT requirements on Main Street | $124,000 | Approved Sept. 8 |
| MDT-required changes to date | $132,750.50 | Reported Oct. 20 |
| City-requested changes to date | $55,093 | Reported Oct. 20 |
| Change Order No. 2, more TIF spending authority | $200,000 | Approved 5-0 on Oct. 27 |
| Projected total if every authorized dollar is spent | About $2.7 million | Per staff, Oct. 27 |
At the Oct. 6 workshop, staff listed what the second request covered: MDT crosswalk timers, stormwater changes and paving outside the original scope. They also called the project ahead of schedule at that point. Even with every add-on, the projected total of about $2.7 million is roughly $300,000 below the original $3 million estimate. Staff noted that spending every authorized dollar "isn't our intent."
The money's source matters to anyone who pays Laurel property taxes. The $200,000 is tax increment financing, not general fund money. In the Oct. 27 meeting transcript, staff described TIF dollars as "funds collected from the district based on the increment of taxes to be invested in infrastructure and improvements within the district only." Put simply, new sidewalks downtown are being paid for by the rise in downtown's own tax base, and that money can't be moved to a park or a water main somewhere else in town. During the Oct. 20 workshop, a member of the public asked the city to explain that distinction better, and staff said they would prepare educational materials on TIF.
Staff summed up the trade-off on Oct. 27:
"We're going to end up with a superior project to what we had originally awarded, bidded, and uh contracted for."
The countdown from here to the parade
Here is the remaining schedule, using the dates the city and the Chamber have set:
- Oct. 27. Staff told council that "two to three weeks" of underground work remained before finish work and cleanup. If that estimate holds, underground work wraps up between about Nov. 10 and Nov. 17, which is this week or next.
- After the underground work. Finish work and cleanup, with chip sealing possible on the city street cuts.
- Dec. 1. The completion date in Knife River's notice to businesses.
- Dec. 6. The Laurel Christmas Stroll.
Dec. 1 is a target, and outdoor concrete and paving in Montana depend on the weather in late November. The schedule has held so far, though. Staff called the project on time and on budget in early September, ahead of schedule on Oct. 6 and on schedule again on Oct. 27.
What the Stroll asks of those same blocks
The Laurel Christmas Stroll page shows how much of Dec. 6 happens on the rebuilt streets:
- Christmas to Remember Bazaar, 10 a.m. to 4 p.m. at Laurel Middle School, 725 Washington Ave., with local vendors, music and food.
- Holiday specials at downtown businesses that are open during the Stroll.
- Pictures with the Grinch and Cindy Lou Who at participating businesses. The Chamber says the schedule of locations and times is coming soon.
- The Lighted Christmas Parade at 5 p.m. through downtown. Float registration is linked from the Chamber page.
- Fireworks after the parade, then Santa's Workshop for photos with Santa.
Apart from the bazaar, the whole day happens downtown. It means people walking between storefronts in the dark, standing along the curb for a parade and crossing streets in groups after the fireworks. Those are the conditions the project is meant to fix, with trip hazards removed, ADA pathways upgraded and new crosswalk timers on Main Street. Over the summer, the Outlook reported that most downtown businesses publicly thanked LURA for helping fund the work. The Stroll is the first big event where those businesses get the crowd back at their front doors.
The district keeps building after the concrete cures
This project is one piece of a longer list. Before it, LURA finished the East Railroad Crossing safety and infrastructure upgrades and covered and landscaped the ditch along Bernhardt Road. Three more items have moved through council this fall:
Southeast 4th Street lighting. On Sept. 8, council approved survey and design work for a LURA lighting district on Southeast 4th Street, with Morrison-Maierle doing the work. The street doesn't have enough public right-of-way for the lights, so the city needs easements from 24 property owners. Staff reported in September that all 24 had said they were willing to take part, or would agree as long as their property or business wasn't harmed. The project is in LURA's fiscal 2027 budget.
Bernhardt crosswalks and approaches. At the Oct. 6 workshop, staff recommended a $69,000 task order, Task Order 8, for crosswalks and approaches tied to the Bernhardt improvements.
A Main Street floodplain study. Council approved a subtask order with Triple Tree Engineering so the city could apply for a $2,500 RRGL planning grant. If the grant comes through, the city puts up a $5,000 match. The engineering report would look at ways to take Main Street and nearby side streets out of the 100-year floodplain. In September, staff said a successful study could lead to FEMA funding and cut down on floodplain-related delays inside the TIF district.
The sidewalk work is the part of downtown's reinvestment people walk on. Next up are the Southeast 4th Street lighting, which sits in LURA's fiscal 2027 budget, and a floodplain study aimed at the slowdowns developers face inside the same TIF district.
Thinking about how downtown Laurel's improvements could affect a property you own near Main Street, or one you're considering? Huskey Real Estate Group follows these council decisions closely and is happy to talk through what they mean for your plans. Schedule a Consultation and we'll walk through it with you.