George Kotti was disappointed, yet understanding Friday at the news that the state Department of Transportation canceled a long-anticipated road project that could have meant big benefits for Hot Springs.

"That's very disturbing to us as a community," said Kotti, executive director of the Hot Springs Chamber of Commerce.

Kotti said rumors were circulating that the state was going to table a plan to rebuild a 1-mile stretch of U.S. Highway 18 leading from Maverick Junction west to Hot Springs.

Citing an effort to balance need and a limited budget, DOT announced a change in plans for the highway Friday.

DOT is facing a $27 million budget deficit because of revenue shortfalls.

The 1-mile section of two-lane highway was scheduled for full reconstruction. The plan called for converting the stretch to a four-lane and replacing a narrow bridge with new box culverts.

The project would have completed a four-lane connection through Maverick Canyon to the junction, Kotti said.

Instead, the road will be resurfaced and existing bridges will be rehabilitated. Scheduled for 2009, the improvements should extend the life of the highway another 10 to 20 years, according to a DOT news release.

The plan puts a roadblock on getting traffic off the Heartland Expressway and into Hot Springs, Kotti said.

Studies show that with the energy boom in Canada and new ports opening in Mexico and also Canada, the ports-to-plains corridor, of which the Heartland Expressway is a part, is going to dramatically increase in traffic over the next few years, he said.

"We feel that we, as a community, stand to benefit through economic development as a result of that and also through increased tourism," Kotti said.

Kotti understands the situation DOT is facing with increased construction costs and revenue shortages, but for Hot Springs, the news is still discouraging.

The two-lane portion of the highway is a bottleneck, particularly in the summer when traffic is heavier, he said.

Extending the life of the road for another 20 years rather than making the planned improvements sends a message to business and travelers that "we don't want you to come here to Hot Springs," he said.

Contact Andrea Cook at 394-8423 or andrea.cook@rapidcityjournal.com