Planned upgrades to the intersection of Shun Pike and Hutchinson Lane, which at one time included the installation of a roundabout, have been halted.

Randy Hancock of HWC Engineering, the engineer for the project, said the hold-up on the project happened because of new regulations from the Indiana Department of Transportation.

"INDOT implemented a new policy on how projects move forward. And they're holding everyone to tight schedules now, which they weren't doing in the past."

According to the new guidelines, cities have three fiscal years after INDOT approves a project to spend the state money that has been allocated. If the money is not spent in that timeframe, the funding is pulled.

The Hutchinson Lane project was approved in 2008.

Hancock told the Madison Redevelopment Commission, or TIF Board, on Wednesday that it would be able to apply for some of the initial funding from the state, but receiving that funding is not guaranteed.

Delays to the project came more than a year ago because of concern over a roundabout that was going to be installed. The city decided to continue with extending and repaving the road while it was deciding whether a roundabout or making the intersection wider were options.

Because local funds have already been set aside for the project, the TIF Board decided to continue repaving the remainder the intersection and leaving it ready for future improvements if INDOT funding is acquired.

Mayor Damon Welch said many communities are facing similar situations.

"We're just one of many all over the state that got (funding) pulled. We felt like it was better to go ahead and not hold that up, because we already had all the right-of-ways pretty much done," he said.

The next TIF Board meeting will be June 19.