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Nicollet Mall Redesign Proving To Be More Costly Than Expected

MINNEAPOLIS (WCCO) -- The plan to revamp Nicollet Mall just got more complicated.

The cost of the project is coming in much higher than expected. The city set aside $35 million for the construction, but many contractors don't think it can be done for that amount.

In fact, the city received only one bid. And that bid was $24 million higher than what the city budgeted.

While the city did rely on two separate and reputable companies for a cost analysis, those companies underestimated some of the expenses and came up with a much lower budget.

Still, once the construction is said and done, the mall will look similar to the original plan but with some big cost-saving changes.

"It's a unique project, it's not a typical street project," said Public Works director Steve Kotke.

For the last month, Kotke has worked to revamp the $35 million plan after a recent bid came in more than $20 million over budget.

"We've rejected that bid," he said. "We went back and did a lot of evaluation about what was the reason for that result."

The biggest issue: concrete pavers that would line the street and sidewalk.

"I think the part we missed was the issue associated with the installation of the pavers," Kotke said.

The packaging of the project as a whole may have raised the price by forcing contractors to find outside work.

"This time...it makes a lot more sense to bid separate items separately," said Jacob Frey, who represents Ward 3, which encompasses downtown Minneapolis.

The Nicollet Mall redesign is one of three downtown projects in the works to see higher than expected costs.

Small features of the Vikings stadium park will be delayed to raise private money, and the Target Center project came in nearly $25 million over budget.

"As people are watching the sausage get made, it's inevitable that they're going to make hay out of how disgusting it is at times," Frey said. "But the reality is that these project, once completed, are going to taste really good."

Yet for the Nicollet Mall project, the plan is to modify rather than spend more money.

"We can build the Nicollet Mall project on the budget we have," Kotke said.

Instead of pavers, the city is looking at just using normal concrete.

They'll draw up the plans which will be ready for the public to weigh in on in February.

The goal is to have this project finished by fall of 2017, about a month-and-a-half behind schedule.

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