State College will defer $1.3 million in non-critical public works and park projects to 2026 in order to complete funding for phase 2 of the borough’s Calder Way project this year.
Borough Council on Monday unanimously approved the 2025 budget amendment, which will reallocate funds from street resurfacing, park facility and infrastructure improvements and sanitary sewer replacements to this year’s work on the multi-phase project to replace utilities and create a more pedestrian- and bike-friendly corridor on Calder Way.
The borough received grants funded by federal COVID relief money for specific utility aspects of the project, but they require a 33% match on eligible costs for any given phase of work, meaning only 67% of the grants could be used for phase 2. Borough Manager Tom Fountaine emphasized that no grant dollars were revoked, and that the remaining grant funding can be used on phase three of the project if it takes place, as is expected, in 2026, when the money must be spent.
“It’s not a change in policy. In putting the final budgets together and doing the analysis needed to go forward… there were some things that came up that didn’t get fully funded as a result of the 67% limitation,” Fountaine said.
The total cost for phase 2 is $3.26 million, with grant funding covering about $1.23 million. The balance is being covered by the borough, along with $283,900 from the State College Borough Water Authority.
Phase 2 of the Calder Way project will take place in the two-block area between South Atherton Street and South Fraser Street. Work will involve roadway reconstruction, curb, curb ramp and driveway apron replacements and utility infrastructure replacement, including sanitary sewer main and lateral replacement, storm sewer improvements, waterline and water service replacements, gas line adjustments, provisions for future underground relocation of electric and telecommunications.
Grants are designated for sanitary sewer, stormwater and waterline replacements, but Fountaine noted that they cannot be applied to the estimated $850,000 in electrical and telecom work included in the projected total.
To cover the $1.3 million shortfall from the 67% limitation of the grants, the borough will reallocate $400,000 from street resurfacing, $300,000 from parks facility improvements, $300,000 from parks infrastructure improvements and $300,000 from sanitary sewer rehabilitation and replacement.
A final street assessment for 2025 won’t be conducted until the spring, so specific paving that will be deferred is yet to be determined, Fountaine said.
For parks facility improvements, construction of a permanent restroom facility at High Point Park, including sitework, the structure and utility connections, will be pushed to 2026. Under the parks infrastructure budget, planned parking lot and playing court resurfacing at High Point Park, along with replacement of fencing around the playing courts, also will be deferred to next year.
The reallocations do not affect the construction of the new skatepark at High Point Park, which Fountaine said is expected to go out to bid in the coming days and be constructed in two segments this year.
Sewer main and lateral lining projects that will be moved to 2026 are
- Centre Lane from South Atherton Street to Westerly Parkway
- East Irvin Avenue from South Pugh Street to South Garner Street
- Logan Avenue from South Atherton Street to the dead end
- Old Boalsburg Road from Westerly Parkway to South Atherton Street
- Old Boalsburg Road from South Atherton Street to East Lytle Avenue
- Old Boalsburg Road from East McCormick Avenue to East Irvin Avenue
- Hetzel Street from East College Avenue to East Calder Way
- Holmes Street from East Park Avenue to November Alley
Sewer projects that will still go forward in 2025 include mainline and laterals on Martin Terrace, mainline spot repairs on South Atherton Street south of Westerly Parkway and miscellaneous laterals throughout the system.
Bidding for phase 2 of the Calder Way project will be advertised after staff finalizes work sequences, milestone dates and no-work days, Fountaine said.
Phase 1 of the project was completed in early December and involved similar work as phase 2, though over a larger area from McAllister Street to South Fraser Street. In total, crews installed 2,090 linear feet of sanitary sewer pipe, 2,955 feet of new water lines and approximately 9,260 feet of electrical conduit underground during phase one, according to the borough. They also paved and marked a half-mile of roadway and upgraded nine pedestrian ramps to meet federal guidelines.
Phase 3, scheduled for 2026, is expected to include the same kind of work on Calder Way from McAllister Street to Hetzel Street.
The overall project is anticipated to last through at least 2028.
Calder Way is a focus of the borough’s 2013 Downtown Master Plan and “is envisioned as a pedestrian-preferred corridor with limited vehicular traffic,” according to State College’s 2025-29 Capital Improvement Plan. That includes “replacing curbed sidewalks with more aesthetically pleasing measures and the incorporation of other streetscape enhancements” from Hiester Street to Burrowes Street, after utility replacements have been completed.
Streetscape and transportation work will include widened sidewalks to provide an at-grade pathway using stamped concrete and ADA upgrades at all intersections with detectable warning devices. The vision for the project has also suggested installation of retractable bollards for traffic control and new lighting, greenery and public art, though specific elements have yet to be determined and designed.
The remaining phases are estimated to cost about $24.3 million, and in September the borough received a $15.9 million federal grant for the project funded through the 2021 Bipartisan Infrastructure Law.
