Construction had begun on the viaduct by May 1969; in the meantime, National City was making plans for developing the freeway corridor with motels and restaurants, as well as a shopping center. In mid-1969, bidding was to begin on of I-805 from north of Friars Road to north of what was then US 395, which would become SR 163. Construction from J Street south to near San Ysidro was underway by September, when there were concerns that an order from President Richard Nixon to reduce federal construction projects by 75 percent might affect funding for the portion north of Friars Road. However, Governor Ronald Reagan lifted the associated freeze in construction at the state level a few weeks later. A month later, the contract for the portion between Friars Road and US 395 had been awarded for $15 million (equivalent to $ in ); the portions between there and north of Miramar Road were in the planning phases, while construction continued south of I-8 to Wabash Boulevard. The portion from SR 52 to Miramar Road had been contracted out to O.G. Sansome Company for $5.6 million (equivalent to $ in ) by the end of 1969. Meanwhile, $4 million (equivalent to $ in ) of state funding was spent in 1969 to find housing for those who were to be displaced by the freeway in San Ysidro.