Jonathan Streetman and Robert Zaltberg, Herald-Times
It's official: The state of Indiana is taking over I-69 Section 5.
Officials from the Indiana Finance Authority, which oversees major state projects that involve debt, announced Friday the state has reached an agreement in principle to take over the construction, operation and maintenance of upgrading Ind. 37 to interstate standards from Bloomington to Martinsville. The agreement is with I-69 Development Partners, which had been hired by the state in a public-private partnership to complete and maintain the 21 miles of highway.
The Indiana Department of Transportation will take over direct control of the project by July 31.
"This agreement should allow the state to achieve modest savings" through the life of the project, state Public Finance Director Dan Huge said during a conference call Friday afternoon. The new agreement lowers the total estimated cost of the project, partially from lower interest payments, from $590 million to approximately $560 million.
As part of the agreement, I-69 Development Partners will pay its bondholders $12 million and the state $50 million.
Huge said the Aug. 31, 2018, completion date is in place and that "we have full confidence INDOT can manage this project moving forward." The state will honor previous commitments made to ease traffic congestion during move-in weekend for Indiana University and on the days of big IU sporting events.