Keene City Hall (File photo by Hannah Schroeder/Sentinel Staff)
Keene recently reapplied for a multi-million-dollar federal grant that would fund a substantial portion of the downtown infrastructure project. If the city is awarded the money, the three-year overhaul, planned to start in 2026, would be expanded to include the addition of public utilities down Gilbo Avenue, Public Works Director Don Lussier has said.
Gilbo Avenue has been a topic of discussion among city councilors because of its potential for redevelopment.
When councilors voted last month to postpone the downtown project until next year, they also gave city staff the go-ahead to apply for the Better Utilizing Investments to Leverage Development (BUILD) Grant Program, which was recently renamed from the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant. Recipients of the federal grant can spend the money on surface transportation infrastructure projects. The program looks for initiatives “that have a significant local or regional impact,” according to the U.S. Department of Transportation.
Applications were due Jan. 30, just days after President Donald Trump tried to freeze all federal grants and spending, although this was temporarily blocked by a federal judge.
Lussier said there was no impact to the application process, and that decisions about recipients are expected in late June.
“We anticipate it will be extremely competitive,” he said.
The primary purpose of Keene’s infrastructure project is to replace aging pipes downtown. A number of above-ground additions are also planned, including protected bike lanes, flashing crosswalks and solar panels.
Keene applied for about $13.7 million to fund project elements related to transportation, including surface treatments, pedestrian space and bike trails. Lussier said 55 percent of the project elements are grant-eligible.
Although the city was not awarded the money when it applied last year, Lussier said this latest application is more competitive because the final design and environmental reviews are now complete.
“Project ‘readiness’ will be very good,” Lussier said in an email.
“Also, we reviewed our application with Federal Highway Administration staff after last year and they provided some feedback on areas where we could provide more detail or better justification.”
Lussier noted that expanding the project scope to include adding public water and sewer infrastructure on Gilbo Avenue from St. James Street to School Street — which was also part of last’s years application — also increases the project’s competitiveness.
“The idea of the BUILD grant is to use transportation infrastructure spending to stimulate economic development,” Lussier said. “And the argument is by extending the utilities … we’re taking those vacant lots that are parking lots now and opening them up for more intensive development.”
Extending utilities down Gilbo Avenue is projected to increase the cost of the downtown project from a current estimate of $17.4 million to $22.7 million, according to Lussier.
But, he said, the grant would drive down the burden on taxpayers.
“That’s going to be a lot more value than the cost of extending the utilities,” he explained.
“Eventually we’re going to have to extend utilities down Gilbo Ave. It’s really, I think, just a matter of time before a developer comes in and wants to redevelop those underdeveloped and undeveloped properties.”
This development could include housing, he noted, of which there is a significant shortage in the Elm City and across the country.
“Somebody could put in a 300-unit apartment building on that property, for example,” he said.
Gilbo Avenue’s development potential has drawn the attention of councilors and community members alike over the years.
This area of Keene has also drawn the interest of Keene State architecture students. Last spring, students created designs for buildings that could add to the housing stock. Their models, which they completed as part of a class, were on display in the Keene Public Library last June.
The city has also eyed Gilbo Avenue for more parking. Last spring, councilors directed city staff to move forward with a feasibility study for building a large garage in the city, with the Gilbo East surface lot a possible site for the structure. The study is still being completed.
Southwest Region Planning Commission Assistant Director J.B. Mack said all the underground infrastructure improvements planned as part of the downtown project will make development more attractive.
“Sewer and water improvements in the downtown area (including Gilbo Ave) should help Keene become more attractive to developers, including those interested in housing development, because the water and sewer system will be more reliable,” he said via email.
“However, development in the Gilbo Ave area — at least in the short term — will largely be contingent on what owners want to do with their land. Keene owns some of the land on Gilbo Ave, but much of it is controlled by private owners.”
Sophia Keshmiri can be reached at 603-283-0725 or skeshmiri@keenesentinel.com.
These articles are being shared by partners in the Granite State News Collaborative. For more information, visit collaborativenh.org.