Money is in hand to reroute Highway 89 in Tahoe City so it no longer crosses Fanny Bridge.

A $25.5 million federal grant was awarded to the Tahoe Transportation District for this project as well as bike paths in Meeks Bay and Dollar Point.

An additional $7.5 million needs to be secured to complete the bridge project.

The 100-year-old dam between Fanny Bridge on the Truckee River and the lake outlet. Photo/Bill Kingman

“Although the SR89/Fanny Bridge Community Revitalization Project is still in the environmental stage, the TTD is extremely pleased that a federal agency will fund a major portion once an alternative is chosen,” said Carl Hasty, TTD manager, said in a statement.

The bridge is seismically challenged. The plan is to make upgrades to it and then turn that stretch of the highway into a city street.

The highway will be rerouted through U.S. Forest Service land where the transit center is. The exact route is not set. Alternatives are being studied in the environmental documents. Draft environmental documents could be released in winter 2014.

In addition to the safety concerns, the goal is the new route would relieve congestion at what is now a choke point where highways 89 and 28 come together. Environmental gains are also expected.

Placer County Board of Supervisors will hear an update on the project Oct. 22. An economic study is expected to be completed later this year. Construction could begin in 2015.

The 84-year-old bridge that crosses the Truckee River not far from the mouth of Lake Tahoe got its name because of all the backsides of people that look at the water.

— Lake Tahoe News staff report