Changes to the project outline also effectively put the proposed Diamond Creek underpass on hold.
By Delcenia Cosman
Reporter, Homer Independent Press
Rehabilitation of the Sterling Highway from the southern entrance of Anchor Point to Baycrest Hill above Homer is again delayed, and the proposed Diamond Creek underpass has been put on hold.
The Sterling Highway project was included in the Alaska State Transportation Improvement Plan as early as 2023. The Alaska Department of Transportation announced early last year that construction would start in 2025, but an update provided by DOT last April pushed preliminary construction off until 2026.
Now, according to a project fact sheet, construction is “anticipated” to begin in 2027 and continue through 2029.
One of the major changes to the project, along with the timeline delay, is that it will no longer be split into two phases. In the original proposal, phase one would have begun this year and addressed the stretch of highway from Mile 157 to 161, south of Norman Lowell Road. Phase two was expected to start in 2027 and would have completed the highway reconstruction up to Mile 169.

This change also effectively puts the proposed Diamond Creek underpass project near Diamond Ridge Road on hold.
City manager Melissa Jacobsen said during the Homer City Council Committee of the Whole meeting on Monday that, since DOT is now merging the Sterling Highway project into one phase, it will no longer be able to incorporate the pedestrian underpass.
“If we want to continue to pursue it, we need to reach out to DOT planning to talk about a new project,” she said.
Last year the Homer City Council earmarked $250,000 from the Homer Accelerated Roads and Trails, or HART, Trails Fund to develop a trailhead and trail segment in line with the proposed underpass. Ordinance 25-44, appropriating that funding, also states that the funding is contingent upon DOT’s approval of the pedestrian underpass as part of the current Sterling Highway project. If that, along with certain other criteria, were not met, the funding would be returned to the HART Trails Fund.
DOT project spokespersons did not respond to requests for comment before press time.
Follow updates about the Sterling Highway rehabilitation project and find more information at www.sterlinghwymp157-169.com/documents.html.



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