SLO’s Prado Road Interchange is $33 million short. When will the overpass be built?
A critical infrastructure project in San Luis Obispo with a remaining $33 million construction funding gap could benefit from the passing of the recent federal Infrastructure Investment and Jobs Act, according to SLO city officials.
The proposed $67 million Prado Road interchange project aims to provide a new crossing over Highway 101 between Madonna Road Road and Los Osos Valley Road.
SLO civil engineer Wyatt Banker-Hix, the interchange’s project manager, said in an email that the city will “aggressively pursuing state and federal grant opportunities, which we expect will be available with the passing of the recent federal infrastructure bill, the Infrastructure Investment and Jobs Act.”
President Joe Biden signed the $1 trillion infrastructure bill into law in November.
Banker-Hix added: “The city also plans to close this funding gap by using local funds, development impact fees, debt financing, as well as working with funding partners to meet their current fair share funding obligations based upon current construction estimates.”
The envisioned project is considered an important thoroughfare to reduce traffic congestion, allow for easier access to Highway 101 with new northbound on- and off-ramps, and support new SLO housing, according to the city’s website.
As the approved 577 homes are developed at San Luis Ranch and the commercial portion of the project goes in, traffic impacts could emerge well before the overpass is finished by its target date of 2028. The San Luis Ranch site also plans to add a hotel on site, part of its development planning.
During the early planning of San Luis Ranch, former city transportation manager Jake Hudson said the Prado Interchange is essential to supporting long-term growth.
Traffic could potentially get significantly worse in a busy area of San Luis Obispo if a major city freeway overpass project isn’t built on time to handle the demand, according to those discussions.
“The overpass will allow acceptable levels of congestion, and without it, we’ll have too much,” Hudson said in 2017.
Project costs
The project costs are being shared by the city, SLO County, San Luis Ranch, as well as federal, state and regional funds administered by the San Luis Obispo Council of Governments.
Estimates in 2017 projected costs around $25 million to $30 million for the interchange. But early planning-level studies did not include the full expense of the project, according to city officials.
“Estimates included construction costs but did not account for any soft costs (planning, right-of-way, design, environmental, construction engineering) construction contingencies or realignment of Elks Lane, which needs to happen as part of interchange project,” Banker-Hix said in an email.
Additionally, the type of structure required for the overcrossing wasn’t known at the time. It involves the use of columns to allow floodwaters to pass under the interchange, which increases the cost considerably, city officials said.
Also, construction costs throughout California have substantially increased in recent years.
The project currently has $26 million in secured funding for its estimated $59 million in construction costs — $10.9 million from the city of SLO; $7.3 million from San Luis Ranch, and $7.4 million from SLOCOG and SLO County — leaving a $33.4 million gap.
City planning calculates that vehicle trips that use the interchange would have 42% that start and end in the city, 28% starting or ending at San Luis Ranch and 30% that are more regional in nature.
“We are planning to start construction towards the end of 2025,” Hix-Banker said. “Construction is anticipated to take 36 months, with a completion date of winter of 2028. This is still somewhat preliminary, as the project requires Caltrans review and approvals as well, which could affect the final schedule.”
San Luis Ranch housing and commercial plans
San Luis Ranch is under construction on the 131-acre site bordering Madonna Road, Oceanaire Drive and Highway 101.
San Luis Ranch homes are being built in phases with expected completion over the next couple of years — already with some of the initially phased homes in place.
The project’s marketplace wing, called the Agricultural Heritage and Learning Center, plans to break ground in about six weeks in preparation for a grand opening in 2023, said Jacob Grossman, a San Luis Ranch project manager.
The commercial wing of the development site features tenant spaces for restaurants and breweries, a 40-acre organic farm, and a public museum focusing on the agricultural history.
This story was originally published February 28, 2022 at 9:00 AM.
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