Isaac Construction has been awarded a $4.8 million contract to deliver the Albany Street Connection project and the resurfacing of the road.
This is well above the $3m budget in the council’s 2025-34 long-term plan, although NZ Transport Agency Waka Kotahi (NZTA) was also contributing a 51% subsidy towards both pieces of work, reducing the council’s share of total costs to $2.35m, a council press release said.
Work on the Albany Street Connection involves pedestrian safety improvements including new crossings, as well as improved bus stops, new mobility parks and a two-way separated cycleway.
The contract covers two pieces of work: $3.5m for construction of the Albany Street Connection and $1.3m to reseal the road at the conclusion of the work.
Construction is expected to begin early in the new year and be completed by October.
The project has not been without controversy: it made it through an 8-7 vote at the Dunedin City Council last month after councillors accepted a budget overspend.
At the meeting, Crs Jules Radich and Russell Lund argued the project should be paused while the council looked into what they described as a better alternative, which would be along the banks of the Water of Leith.
The project had previously stalled in August when the council did not approve parking changes and the following month there was a controversial 8-7 vote that put it back on track.
Cr Steve Walker, a longtime supporter of the project, said it was a "relief" to get it to this stage.
"I am pleased Isaacs got the contract. You can see the work in George St and how successful that has been.
"I just see this as not only an extension of the great George St work, but also thankfully for somebody like myself and many others, many hundreds who cycle the shared path around the harbour, it’s just that vital link back — at long last we’ll have a self-contained route."
Cr Lund said it was "an ideological decision, and I just do not agree with any part of it".
"I believe it should have been revisited when it came in significantly over budget."
Work to upgrade Three Waters infrastructure in part of Albany St — from Grange St to Forth St — will also be carried out in tandem with the Albany Street Connection project to minimise disruption in the area.
The Three Waters work, involving the renewal of service pipes and an ageing water main supplying a total of 24 properties, is expected to take several days and cost $120,000.
