The Glenwood Springs City Council on Thursday unanimously approved a $49.6 million federal grant agreement for the South Bridge project, clearing a major step toward construction.

Mayor Pro Tem Erin Zalinski was not in attendance, but the six remaining council members voted in favor of the agreement, which finalizes federal transportation funding and allows the city to move forward with project obligations.

City Engineer Ryan Gordon said the contract comes through the U.S. Department of Transportation and the Federal Highway Administration. The approval allows the city to formally obligate the grant, meaning funds can begin transferring from the federal government to the Colorado Department of Transportation and then to the city.

“This is the first major step into getting the grant obligated,” Gordon told council. “It means the money is transferred from the federal government to CDOT and then on to us. So this is a pretty big milestone.”

The vote authorizes the city manager and city attorney to make any minor, non-substantive edits before submitting the final paperwork.

The $49.6 million grant will cover roughly 80% of the project’s cost, with the city responsible for a 20% local match. Glenwood Springs has also received additional congressional earmarks through former Rep. Lauren Boebert and Sens. John Hickenlooper and Michael Bennet, each requiring similar matching funds.

Councilor Ray Schmahl said during discussion that “regardless of what you think about South Bridge or the cost or the financing or any of that stuff, this grant probably has the fewest amount of strings attached to it of any federal grant in the last 30 years.”

Gordon said city staff are working with CDOT to complete right-of-way acquisition, environmental documentation and utility clearances before putting the project out to bid. If the schedule holds, bidding could begin by late January or February, with construction expected to start in summer 2026.

He said the city continues to anticipate a roughly two-year construction timeline, though the start date could shift depending on federal approvals and the contracting process.

“This was something we’ve been working on for the better part of a year to get this grant agreement done,” Gordon said in a follow-up interview with the Post Independent on Friday. “Once we get these final approvals, we can move toward bidding and then ultimately breaking ground.”

Thursday’s approval follows an October decision to proceed without tolling within the federally defined project area, after council determined that adding a toll would jeopardize the grant and delay the timeline. Federal officials advised that pursuing a tolled option would require reopening the application and conducting a new environmental review.

The South Bridge project will create a second connection between Colorado Highway 82 and south Glenwood Springs, providing a critical evacuation route and easing commuter traffic congestion.