The Dickinson Hills Shopping Plaza project is expected to downsize its initial phase slightly to make up for a $2 million budget overage.

Craig Kubas, city engineer, gave the commission an update on the plaza that is to include TJ Maxx and Hobby Lobby.

As previously reported, Raddon Development, the owner of the property, was left holding the bag after its partner, Timbers Development Group, dropped out of the project, postponing the project by a year.

“The difference between the project being constructed this year or not was $2 million,” said Joe Gaa, city administrator. “That’s why Timbers walked away. There was a $2 million overage in the construction budget ... So Raddon’s been looking at how (they can) shrink that $2 million overage.”

Part of the construction budget overage included $400,000 for the Fairway Street project. The city agreed to pay for up to $1.37 million for the project, which it would do as a separate public project, with the understanding that an additional cost incurred would be the responsibility of the developer. The bid for the project, which was $1.7 million, was thrown out.

The city will rebid for the project soon.

The project’s budget was stressed elsewhere, as well, including in the construction of the buildings.

Initially, the project was to include one larger building with the four anchor stores and other smaller stores as well as two smaller buildings on the parking lot.

“They are downsizing it slightly, the amount of stores to be built, but the main strip mall that would be built with the TJ Maxx and the Hobby Lobby are absolutely still on the table,” Kubas said. “Our portion of the project — the Fairway Street component — would really remain unchanged. They had a few areas that they would like to remove, as far as the private side of the development. When they take this one store out, they would need less parking lot, less access roads, but we have not seen those plans yet.”

Gaa said the changes are little things that don't need to be done immediately and won't hurt the long-term project, which is expected to begin construction in 2020.

In other news, the City Commission approved specific zones for mill and overlay work in 2020.

The zones and the streets inside them were based on a pavement-management plan previously approved by the commission that color-codes the city by pavement conditions.

“We tried to package these up into zones, addressing our streets that were one, in the worst condition, but would also be fixable by a mill and overlay; and two, that when we group two or three of these together, would meet our budget, which is roughly $4.5 million,” Kubas said.

Zones A, B, C and E were deemed of highest priority. Zone A is in northwest Dickinson and includes the area from 21st Street North to 26th Street West, bounded by 10th and 6th Avenue West. Zone B is in northeast Dickinson and is mostly commercial. It includes the area north of 21st Street to 26th Street East and the area between 24th Avenue and Sims Street. Zone C is an area from 12th Street East down to Allen Street. Zone E is on the far east side of Dickinson on 25th Avenue East.

For Zone E, Kubas said the hope is that “we would be able to do everything from East Villard north towards that mobile home court by the interstate.”

Curb, gutter and sidewalk repairs will also be included in the project. To help pay for those repairs, the city will assess landowners in the affected areas for the repairs done in front of their property.

"This is a big project. We typically do about $2, $2.5 million. This is estimated to be about $4.5 million, and we want to do that for at least a couple of years to get caught up. We know this will be a big help," Gaa said.