IBJNews

Indiana agencies finalize deal for new I-69 section

Back to TopCommentsE-mailPrintBookmark and Share

Indiana officials have approved a deal with the private company that will finance and build the new section of Interstate 69 between Bloomington and Martinsville.

The Indiana Finance Authority and Indiana Department of Transportation said the agencies have finalized the agreement with private contractor I-69 Development Partners to upgrade a 21-mile stretch of the existing Indiana 37 for the I-69 extension.

Private bonds to finance the project are set for to be sold in June and construction is scheduled to start this year. The new section of I-69 is slated to open by the end of 2016.

Under terms of the contract, the state would make an $80 million "down payment" to the private partner, Isolux Infrastructure, which would pay the $325 million estimated for construction. Once that section of highway is complete, the state starts paying the partner $21.8 million a year for 35 years and the company maintains the highway.

Isolux is working with local contractors E&B Paving of Anderson, Force Construction Co. of Columbus and Gradex Inc. of Indianapolis.

Isolux beat three other consortiums with its proposal.

If the private developer doesn't keep the road open to traffic and up to Indiana Department of Transportation standards, the state could reduce the annual payment.

ADVERTISEMENT

  • Rich
    The taxpayers are getting the short end. Someone with connection's getting the long end?
  • Seems a little pricey
    The net present value of the deal to the contractor, assuming 3.48% as the risk free rate (current yield on the 30-Year treasury note) is $499.5 million. If the true cost upgrade the 21-mile stretch is $325 million, that leaves about $175 left over to cover maintenance over the 35 year contract. Is is worth paying a private company the equivalent of $5 million a year in today's dollars to maintain a 21-mile strecth of highway? It seems a little extreme to me, especially when the state has a AAA credit rating and we could borrow the $325 million at 4% or 5% over the same period and end up paying less over the long run. This doesn't seem to me to be what is in the best fiscal interest of Hoosiers.
  • Vamanos, Amigos
    Can't wait until this road is finished all the way to Reynosa and Nuevo Laredo and all those Mexican trucks start rolling into Indiana. You didn't really believe this was all about making it easy for you to get to Grandma's house in Evansville, did you?
  • Quit confusing Italiano with facts.
  • Maybe not
    At a 6% discount rate, which is reasonable, the present value of the payments is closer to $400M. So it is essentially a $75M premium for the company to maintain the highway for 35 years. Doesn't sound to out of control to me.
  • Crooks all
    Lets see Indiana is going to pay 843 million for a 325 million stretch of highway (that is a 518 million dollar premium). Am I the only one who thinks this is "highway" robbery? AND am I the only one who wonders who's palm is getting greased?

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

    2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

    3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

    4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

    5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

    ADVERTISEMENT