Decorah Council Awards $2.8 Million Contract for Heivly Street Rebuild

You'll want to remember this moment. Help us record what's happening in Decorah. DECORAH — The Decorah City Council on Tuesday approved a $2.8 million construction contract for a major rebuild of Heivly Street, clearing the way for a roundabout and full reconstruction of one of the city's key transportation corridors ahead of nearby school construction. The council voted unanimously to award the project to Skyline Construction Inc., which submitted the lowest of three bids at $2,815,109.22. City Manager Travis Goedken said the bid came in about $285,000 under the city engineer's estimate of $3.1 million. The project includes a roundabout at the intersection of Heivly, Claiborne and River streets, along with full-depth reconstruction of Heivly Street east to State Street. All underground infrastructure in the project area, including water, sewer and storm utilities, also will be replaced. Goedken said the work is planned for a single construction season and is timed to coincide with construction of the new elementary school nearby. Council members previously directed staff to complete the street work before the school opens to avoid repeated closures and disruptions. "Once they get started, just expect to avoid the area," Goedken told the council, advising residents to plan for significant traffic impacts during the build season. The council held a required public hearing before taking action. No written comments or objections were received, and no one spoke at the hearing. Funding for the project initially will come from general obligation bonds, though council members discussed using enterprise funds to cover portions of the cost related to underground utilities. Council Member Steve Zittergruen said he supports the project and understands its urgency but cautioned against relying too heavily on debt for road infrastructure in the future. "I'm excited about the major investment in this really important transportation corridor," Zittergruen said, adding that the roundabout itself is not expected to cost more than a traditional intersection. He also urged the city to continue exploring more sustainable funding strategies for long-term infrastructure needs. Construction is expected to begin in the spring and continue through the 2026 build season. Be the first to know! Sign up for the free newsletter and unlock exclusive updates, breaking news, and tips from around the community.