The Kissimmee Commission approved the price for the first phase of the downtown lakefront redevelopment project Tuesday, which will be an 18-month process costing 27 percent less than the $10.5 million bill estimated a year ago.

The first phase – which includes road realignment, utility infrastructure and a parking lot – will cost no more than $7,696,694, as guaranteed by the city’s general contractor, Burkhardt Construction, of Kissimmee.

“I’m pleased that it appears as though we’re getting started more rapidly than we estimated,” Mayor Jim Swan said. “I don’t think that I’ve seen any project that has received the kind of community support that we’ve had. Everyone is enthused about seeing some enhancements.”

The difference between the estimated price and the final price came down to lower construction bids during hard economic times as well as continual efforts from city staff to cut costs, which could mean a faster turnaround for the redevelopment on the lakefront, Deputy City Manager Mike Steigerwald said.

“The contractor felt like if we were to turn it in pretty quickly, we might also realize a significant saves on the phase two (price) estimate,” he said.

The whole redevelopment project was estimated to cost about $28 million. Between now and fiscal year 2013, the city has a little more than $18 million in sales tax funds budgeted for the redevelopment.

The plan has always been for the city to complete everything after phase one as it can afford to pay for it. But if the city can save similar funds as it did for phase one, total redevelopment on the lakefront might cost only about $20 million, Steigerwald said.

“We’re locking in a price at a recession discount,” Steigerwald said. “Instead of it taking us five years, we could get it all done in a big, massive three-year construction project.”

Burkhardt Construction will begin the bidding process for the second phase of the lakefront, which could be completed as early as November, Parks and Recreation Director Dan Loubiér said.

He added that the project also will create jobs and help the economy for the area.

"There's only one way to put people to work and that is to find work for them to do," Loubiér said. " I think the city's contributing to the solution."

Even given the low costs, however, a funding challenge in the next few years of the project still exists for the city.

“We’re in hopes that, at some point, the county might want to jump in and help,” Swan said, adding that other entities might want to become involved in the future of the lakefront, which he described as a great economic development asset to the whole county. “It remains the number one priority of the city commission.”

Construction on Dakin Avenue began at the end of July. Now that the final price has been determined, several other portions of the renovation can begin, officially on Nov. 2.

The city will be removing portions of Lakeshore Boulevard and Ruby Avenue and then realigning the southern portion of Lakeshore Boulevard to meet Johnston Street, creating a new through street for vehicles. New utilities under Johnston Street, Ruby Avenue and Lakeshore Boulevard – which all will be paved with brick – will serve the park and the properties surrounding it.

Construction costs cover everything from sewer and storm drainage to concrete work, road signs, landscaping, irrigation and the new parking lot.

Phase one, scheduled for completion on May 27, 2011, will begin at the corner of Lakeshore Boulevard and Monument Avenue.