Members of the Hooksett Planning Board and Town Council are looking at options for expanding Route 3 and solving some of the drainage issues in the Kmart plaza and Merchant’s auto sales parking lots.

The town has more than $4 million in federal funds available to spend on expanding Route 3, but those funds could be taken back if not spent by 2009.

The $4 million is earmarked specifically for the Route 3 expansion, but the abutters in the area, particularly Merchant’s and Kmart, need better drainage before the road gets torn up, said Hooksett Town Administrator David Jodoin.

The state Department of Transportation initially presented a plan to the town that added up to about $6 million, which would add lanes to the north and southbound sides of Route 3 in the area of Kmart.

Because that price tag exceeds the federal funds the town has to work with, the DOT came back with other options for the town to choose from that would be within the $4 million earmark.

One of the alternatives involves expanding the road from the intersection of Whitehall and Martin’s Ferry roads to the intersection of Benton Road and Clough Avenue.

Another one proposes expanding the road from the Benton Road and Clough Avenue intersection to just past the Kmart plaza entrance, then realigning the Merchant’s Auto entrance and exit.

However, said Jodoin, the numbers for both of those alternatives are coming in higher than the $4 million mark.

“The council really hasn’t made any decision on which plan they like better,” said Jodoin, adding the town is trying to work with the abutters to make sure the drainage issues are solved before the road expansion begins.

The topic remains as a routine business item on the Town Council’s agenda, but Jodoin said there is no set date for when they will pick up that discussion again and make a decision. The numbers and drainage issues with abutters need to be completely worked out first.

State Sen. Ted Gatsas said he had a meeting with abutters in the area to work out some of the drainage issues and expose them to the options for expansion, adding this is one of the most important projects facing the town.

The area of the Kmart plaza and Merchant’s Auto floods in extremely heavy rains, last time happening when tropical storm Hanna came to town.

“It really shuts down the town of Hooksett,” said Gatsas of the flooding.

The town needs to make sure it gets the necessary easements for the expansion, as well as properly installing culverts on Benton Road, he said, which the town has FEMA funding to complete. The main thing is to do what the town can before the $4 million in funding goes away, Gatsas said.

“Before we lose that earmark, let’s do what we can for $4 million,” he said.