SDOT announced plans to break ground on the east phase of the Mercer Corridor Improvements Project later this summer, in either late July or early August. The two-phase project aims to fix what SDOT aptly calls the “Mercer Mess”–the bottleneck where South Lake Union meets Lower Queen Anne, and major commuting thoroughfare providing access to surrounding neighborhoods, downtown and I5. The project is estimated to cost a total of $295 million, and plans widen Mercer Street to become a tw0-way boulevard, reconstruct Valley Street for local access, improve transit connections,  install bicycle lanes and widen sidewalks for alternative commuters.

Phase 1, which is scheduled for completion by 2013, involves the east phase of construction from I5 to Dexter Ave. The $161 million needed for this phase of the project (which was originally slated to cost $190 million) has been put together by a number of public and private organizations, including $30 million in federal stimulus funds awarded by the US Department of Transportation back in February. Another $9.5 million came in the form of a federal grant from the Puget Sound Regional Council.

SDOT had been waiting on legislative approval from Seattle City Council, which recently came through, before it could award a construction contract and break ground.

“The Council and the community have intensely studied this issue and we have an excellent plan that benefits motorists, freight, pedestrians and bicyclists,” SDOT Director Peter Hahn said Monday. “Thanks to our federal funding partner, the South Lake Union community, and SDOT planners and engineers, we can now start on a project that will be the pride of Seattle for generations.”

In a press release sent out Monday Hahn said the project will:

• Improve access to Seattle Center and Uptown, and the freight route to Fremont/Interbay
• Improve traffic flow off of I-5
• Provide improved access for bicyclists, pedestrians and transit
• Reduce collision risks throughout the corridor
• Support at least 22,000 new jobs and 10,000 new housing units
• Enhance the environment around Lake Union Park

According to SDOT, the project proposal from the lowest bidder, Gary Merlino Construction Company, came in well under the preliminary cost estimate, savings approximately 23 percent on demolition and construction than originally estimated. SDOT also says the project will create 1,200 direct construction jobs, as well as a number of opportunities of apprentices and minority contractors.

Phase II of the project is currently in the midst of environmental review and design planning. An overview of the entire Mercer Corridor Improvements Project can be found here (.pdf). Follow the progress of the project on the SDOT dedicated website.