The appointing authorities for the Louisville and Southern Indiana Bridges Authority announced a number of options Tuesday that could reduce the cost of the Ohio River Bridges Project by $500 million.
Indiana Gov. Mitch Daniels, Kentucky Gov. Steve Beshear and Louisville Mayor Greg Fischer made the announcement that they will explore options to reduce the cost of the $4.1 billion Ohio River Bridges Project, but will not deviate from the two-bridge solution, which includes an east-end bridge, a downtown bridge and the reconstruction of Spaghetti Junction in downtown Louisville. The executives also would like to keep tolls off of the Sherman Minton and Clark Memorial bridges.
“What has been proposed today would not require the record-of-decision to be reopened,” said Will Wingfield, spokesman for the Indiana Department of Transportation.
Further changes to the project — such as removing one of the planned structures — would result in reopening a 2003 record-of-decision and cause a delay the project, something the bridges and appointing authorities have said they are unwilling to do. Wingfield said the proposals presented Tuesday fit within the record-of-decision and might only require some additional air quality analysis studies.
The details
The cost-saving proposals presented in a press release from INDOT include rebuilding Spaghetti Junction in its existing location, rather than moving it south; reducing the east-end bridge, its roadways and a proposed tunnel in Kentucky from six lanes to four lanes with the option to add two lanes later; and completing the Big Four Bridge pedestrian walkway and bike path as an alternative to including pedestrian and bike paths on the new downtown Interstate 65 bridge.
The possibility of reducing the number of lanes for the east-end portion of the project was first announced by Daniels last week during a year-end conference call with reporters. He said the idea was proposed to reduce the overall cost of the project and to likely lessen the amount of tolling needed for funding. Daniels offered some changes had been discussed on the Kentucky side of the project, but would not give details at the time.
Wingfield said the reduction in scope for the east-end portion of the project has been discussed because the traffic projections for the design year, 2025, were just on the borderline of meriting six lanes to handle the traffic projections. With the pedestrian component being removed from the proposed downtown bridge and keeping Spaghetti Junction in its current location a savings total — but not specific figures for each component — was offered, and it could be undervalued.
“The total savings — it’s likely it could be more than $500 million,” Wingfield said.
Reaction
The announcement Tuesday was heralded as a victory by the anti-toll group, Say No to Bridge Tolls.
“We have been fighting for almost a year asking for this project to be scaled down and built without tolls,” said Shawn Reilly, co-founder of the organization in a press release. “The governors and mayor finally agree with us that this project is too big and too costly and we are glad that they recognize we can't afford to toll our existing infrastructure.”
Although anti-tolling organizers said the proposals are a step in the right direction, the group will continue to push for transparency for the project and to keep the existing Kennedy Bridge toll free.
Another such group — No 2 Bridge Tolls — said in a release it is still adamant that all tolling be removed from the bridges project plan.
“The brides authority said over and over again that this project could not be changed,” said Paul Fetter, No 2 Bridge Tolls co-founder and Jeffersonville business owner. “The announcement demonstrates that the authority’s position was premature, if not incorrect.”
Whether or not the proposed cost reductions will be implemented has not been finalized, but the goal to keep the project on its timeline for construction of 2012 will not be affected by the introduction of the cost-saving options.
“Now is the time to dig deeper and move faster to make [the bridges project] a reality,” Beshear said in the release. “We are firmly committed to getting the job done and done right. Let’s start the new year with a firm commitment to reduce the costs of the project.”
Wingfield said the financial reductions will allow the project to move ahead more quickly and secure financing more quickly, as a result of the lower cost.
“The key to our success moving forward is a lean design that meets our needs at the lowest cost,” Daniels said in the press release. “Our ability to move with creativity and innovation will reduce costs and ultimately, the tolls, to make this project happen.”
Approval process
The final decision of which proposals to accept and implement will lie with INDOT and Kentucky’s Transportation Cabinet. But the changes that are made to the project would also have to be approved by Federal Highway Administration.
“The plans will require further study and consultation with federal officials,” according to the release. “But the leaders believe the changes will reduce the overall environmental impact of the project, meet the established purpose and need and avoid any additional delay.”
The ideas presented Tuesday may not be the end of potential cost-saving measures as the bridges authority, along with INDOT and KYTC, will co-host an Industry Innovation Forum in February to discuss additional possibilities to reduce the price tag.
“We will bring together the best minds in the transportation world to provide the types of ideas we’ve been exploring to drive down costs and get the project completed as quickly as possible,” said Bridges Authority Chairman Charles Buddeke in the release.
While the expectation may be that if the overall cost of the project is reduced, the total amount required in toll revenue would also be reduced. A consideration that has not been made is to totally remove tolls as a funding mechanism, as it is currently slated to cover a $2.2 billion funding gap.
However, Daniels, Beshear and Fischer did offer a suggestion to the bridges authority to keep the Sherman Minton Bridge and Clark Memorial Bridge free of tolls.
“Any tolling should be linked to the project’s improvements in cross-river mobility from the expanded Kennedy Bridge downtown and the new East End bridge,” the three executives said in the release.
Christi Lanier-Robinson, communications director for the bridges authority, said the authority was not commenting on Tuesday’s announcement other than a statement released by bridges authority Executive Director Steve Schultz.
It said, in part, “The plans announced today by Gov. Beshear, Gov. Daniels and Mayor Fischer will allow us to build on the foundation we laid in 2010 and move decisively to implement our strategy and work toward a targeted construction date of August 2012.”
Lanier-Robinson said the industry forum and proposed cost-saving measures likely will be part of the new business discussed at the authority’s upcoming meeting.
The next bridges authority meeting is scheduled for 10 a.m. Thursday at Indiana University Southeast’s Hoosier Room in New Albany.
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