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The $2.25 Billion Dig — I-81 Phase 2 Hits Syracuse Streets in 2026
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The $2.25 Billion Dig — I-81 Phase 2 Hits Syracuse Streets in 2026

2 min read

The orange cones are coming for downtown.

After two years of construction largely concentrated on interchanges and outer corridors, the I-81 Viaduct Project’s second phase is about to land squarely on the streets Syracuse drivers, cyclists, and pedestrians use every day. Phase 2 shifts the $2.25 billion project — the largest road construction effort in New York State Department of Transportation history — from the elevated highway’s perimeter to the city’s core.

What Phase 2 Actually Involves

The state will rebuild the stretch from Leavenworth Avenue to Crouse Avenue, constructing new interchange connections to West Street and the future Business Loop 81 — the ground-level roadway that will permanently replace the 1.4-mile elevated viaduct that has divided Syracuse since the 1950s.

I-690 will be reconstructed entirely through the downtown corridor. Lane closures on I-690 West between the Teall Avenue exit and the downtown exit are active now as crews tackle bridge construction tied to the larger project.

Beneath the road surface, workers will replace aging water mains, sewer lines, and electrical infrastructure under Erie Boulevard and Salina Street. A new mile-long drainage trunkline is part of the underground scope, expected to begin by late summer or fall 2026.

The Timeline

Phase 1 began in spring 2023 and encompasses five contracts — all now awarded and under construction. The fifth and final Phase 1 contract, a nearly $251 million award to Salt City Constructors, includes removal of portions of the viaduct and the beginning of the Business Loop 81 conversion, expected to wrap by mid-2027.

Phase 2 comprises contracts six, seven, and eight. Construction is expected to shift full-scale to the elevated section by the end of 2026 or early 2027. The Community Grid should be complete by 2028.

What Drivers Should Expect

Project Director Betsy Parmley has said Phase 2 will add approximately four to five minutes to commute times. Temporary improvements to Almond Street will route traffic destined for Business Loop 81 to and from the central business district.

Why It Matters

The I-81 viaduct has physically divided Syracuse’s south side from downtown for more than half a century. Its removal and replacement with the Community Grid represents the single largest infrastructure investment in reconnecting those neighborhoods.

Phase 2 is where the project gets real for everyone who drives, walks, or lives in the city center. Plan your routes. Expect delays. And watch a 1950s-era highway slowly give way to something new.

Sources: NYSDOT, Governor.ny.gov, LocalSYR, CNY Central. 14 facts verified across 7 sources.

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Community Reporter

Mike DiNapoli

Third-generation Syracusan. Spent 15 years in local radio before joining CNY Signal. Covers neighborhoods, food, and community.


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