Tyler, Texas, approves $25.6 million utility overhaul for downtown core

(UI) — City and county leaders have approved a $25.6 million contract to overhaul Downtown Tyler’s aging infrastructure. The agreement, authorized during a joint meeting of the Tyler City Council and Smith County Commissioners Court, advances the long-planned Downtown Infrastructure Improvement Project.

The contract with The Fain Group covers underground utility work, street reconstruction, upgraded sidewalks, lighting, and landscaping. Construction is expected to begin in fall 2025 and will continue in phases over the next three years to minimize disruption to local businesses and residents.

The funding includes $10.7 million in American Rescue Plan Act (ARPA) funds exchanged through the City’s Half Cent Sales Tax Fund. The remaining amount will come from the Half Cent Sales Tax, Tyler Water Utilities, and City Information Technology funds.

Initial street closures may begin as early as July 2025. Phase I will focus on improvements to Erwin Street, Broadway Avenue, Ferguson Street, and College Avenue. Phase II will complete new green space development west of the Downtown Square.

The City and County plan to provide regular updates through a project website and social media platforms.

“Let’s talk about the three reasons we’re doing this: the commitment to infrastructure, economic development and investment in the heartbeat of Tyler... and that is what we’ve just done,” said Mayor Don Warren.

Smith County Judge Neal Franklin added, “We are going to see something special happen right here in Downtown Tyler, the heart of Smith County.”

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