I-81 update: The biggest transportation project in NY just got even more expensive

The cost to replace Interstate 81 in Syracuse has likely increased by billions of dollars.

The project has reached $3.6 billion before the state begins to tear down the elevated highway – the goal of the project. The estimate for the entire project at the start of construction, in 2023, was $2.25 billion.

The state transportation department announced Friday afternoon that the most recent contract had been awarded. It will cost $2.1 billion.

The DOT’s news release did not acknowledge that the new contract had boosted the cost of the entire project more than $1 billion beyond the original estimate.

The winning bid was a group of contractors called CNY Alliance. The group has handled two other contracts, each worth more than $300 million.

The group is one of only two to win all six contracts so far. There are still three contracts planned to finish the project.

The news release presented the cost as a celebration of the largest transportation award in New York state history.

It begins the second half of construction intended to culminate with the removal of the 1.4-mile elevated highway through downtown Syracuse. In the end, traffic will drop to street level and drivers will navigate city streets to their destinations or back to high speed on I-81 north and I-690.

Before that happens, the state has worked to build up I-481 and I-690 to handle more traffic heading around the city. I-481 will eventually be renamed I-81 and the route through the city will be called “Business Loop 81.”

The next contract rebuilds 15 lane miles of I-690 in both directions from Leavenworth Avenue to North Crouse Avenue. The ramps that link I-690 with I-81 will be closed and removed. New ramps, bridges and retaining walls will create a new interchange.

The work under this contract also finishes the interchange already started on I-690 at Crouse and Irving avenues. Drivers will be able to enter and exit the highway and head both east and west – a new traffic pattern for people heading to Syracuse University or the hospitals.

This step in the project also rebuilds 25 city streets.

• The elevated West Street will be lowered to street level to meet West Genesee Street. This is intended to reconnect the Near Westside neighborhoods with downtown and the Onondaga Creekwalk. Ramps from West Street to Herald Place and from North Franklin Street to West Street will be closed.
• Pearl Street will be extended to meet Erie Boulevard. A second lane will be added on the entrance ramp drivers use now to enter I-81 north.
• The existing off-ramps for West and Franklin streets and Clinton and Salina streets will be removed and replaced with a consolidated two-lane off-ramp. One lane will lead to a new connection at Oswego Boulevard and one lane will lead to Clinton Street.
• North Clinton Street will be extended to meet Butternut Street.
• The Butternut Street bridge will be replaced.

The DOT did not immediately respond to questions about financing this increase in the project’s cost.