Syracuse Awarded $143.5 Million Water Project Contract
The state has contracted two firms to build a new stormwater trunk line as part of the ongoing I-81 replacement effort.
Updated on Sept. 21, 2026 in Construction
Live Poll
Do you support the disruption caused by major local infrastructure projects like the I-81 reconstruction?
State officials have awarded a $143.5 million contract to Lancaster Development and Tully Construction for a new stormwater trunk line in downtown Syracuse. The project aims to separate sewage and rainwater systems to prevent runoff from entering Onondaga Lake.
Why it matters
This infrastructure work serves as a critical component of the broader I-81 replacement project, ensuring environmental protection by managing bridge runoff. It marks a significant investment in the city's aging underground utility network.
The awarded contract covers the installation of a mile-long stormwater trunk line. This project is a key piece of the larger $4.4 billion I-81 replacement effort.
The players
Lancaster Development
This construction firm is one of the two entities selected by the state to complete the downtown Syracuse water line project.
Tully Construction
Tully Construction is a partner in the joint contract tasked with modernizing stormwater infrastructure near I-81.
The details
Contractors will dig up downtown streets to build a mile-long trunk line that manages drainage from I-690 and I-81 bridges. The construction plan involves block-by-block closures lasting approximately one month each, with crews also installing new bike paths, pedestrian walkways, and signage.
Timeline
September 21, 2026: The state officially awarded the construction contract.
Market Landscape
This project integrates essential utility upgrades into the massive urban infrastructure overhaul known as the I-81 replacement effort. It follows a trend of coordinating complex underground work with surface-level highway redevelopment to minimize long-term disruption.
Residents and downtown commuters should prepare for rolling, month-long street closures as crews work through the area block by block. While the construction will cause temporary transit delays, the project aims to improve city drainage and add new pedestrian and bicycle pathways.
The takeaway
Local commuters are encouraged to monitor city traffic advisories closely as the block-by-block construction schedule unfolds. The project represents a major local investment in environmental health, specifically targeting the protection of Onondaga Lake.
Further reading
For more updates on regional infrastructure, visit the Construction section.
Live Poll
Do you support the disruption caused by major local infrastructure projects like the I-81 reconstruction?
