WHITE RIVER JUNCTION — A long-planned infrastructure project that would tear up a section of South Main Street has been pushed back to next year after town officials say they ran into logistical issues during the final stages of planning.

For restaurant owners who were wary about the project’s impact on outdoor dining and other revenue this summer during the COVID-19 pandemic, the news may be good for their business.

The $5 million project, which includes ripping up parts of South Main Street to upgrade sewer and water lines, has two phases: the first phase at the south end of the street is already well underway and expected to finish this summer.

The second phase, which is planned for the northern end of the street by the Amtrak Station and Gates Street, was expected to begin this summer but will likely start in spring of 2022, said Town Manager Tracy Yarlott-Davis.

She said the reason for the delay stemmed from planning and permitting issues — including paperwork and forms that hadn’t been signed in time for phase two work to begin.

Yarlott-Davis said it “became clearer” by the end of May that the town was not ready to embark on the remainder of the project this summer.

Yarlott-Davis initially worried that delaying the project would impact state funding but said Monday that’s no longer the case.

“The funding we got, we got. We’re good to go on that,” she said of the state funding to help pay for the project. “The new funding we’ll get when we continue the next phase.”

She added that she’s hopeful the town could see some federal funding from the American Rescue Plan, but doesn’t know if that will happen or how much the town might receive.

As for the funding next year, Public Works Director Hannah Tyler said she doesn’t know how the delay will affect the cost of the project.

“Going out to bid in a year may lead to increased costs, but we’re in a pretty turbulent economy at this time so bidding trends are difficult to predict at this time,” Tyler wrote in an email on Monday.

Tuckerbox owner Jackie Oktay who was considering closing her restaurant for a couple of weeks at the end of the summer due to construction said she was glad to hear the news about the delay.

“It’s a huge difference for us,” Oktay said. Tuckerbox has 30 outdoor seats and the construction would likely toss up dust and sand, making it difficult for patrons to sit outside and deterring visitors from coming through that part of town, she said.

“People will avoid this area like the plague.”

Oktay said she is supportive of the project, which will ultimately benefit her business when completed. Okay said Tuckerbox has had to deal with several water issues over the years due to the aging water lines in town.

But the financial burden she and her employees would face if the project were completed this summer is too great.

“They took a huge pay cut during COVID and they’re all doing really well right now and saving money and getting bills paid,” Oktay said. “To slow down the restaurant now, for them especially, would be really detrimental.”

Yarlott-Davis said concerns from local business owners were not the main reason the town decided to delay the project, but called the benefits for local businesses and restaurants a “silver lining” to the decision.

Anna Merriman can be reached at amerriman@vnews.com or 603-727-3216.