ELKHART -- Improvements on U.S. 31 may hinge on how high the bids are for the 75-year Indiana Toll Road lease, Gov. Mitch Daniels said Friday.
Daniels proposed leasing the toll road to raise money for the state's $2.8 million shortfall for roads and bridges.
To bridge the gap, the state could borrow money against future tolls, he said, but it would get the state only $1 billion.
"But it wouldn't get us close to 31," he said in an interview with The Truth editorial board Friday.
State Sen. Marv Riegsecker, R-Goshen, pushed for 2008 as the starting date for the improvement on U.S. 31 between South Bend and Indianapolis. Daniels agreed to begin the $100 million project in 2008 if the money is available. (Editor's note of Jan. 10: To clarify this...the cost of the U.S. 31 project from South Bend to Plymouth is estimated at $100 million, according to Daniels. The total cost of the U.S. 31 project is estimated at $1 billion.)
If the lease bid is high enough, at least one third of the money will stay in the toll road corridor counties, he said. Daniels did not specify the bid amount necessary for that to occur.
The road passes through Steuben, LaGrange, Elkhart, St. Joseph, LaPorte, Porter and Lake counties.
"No part of the state would be nearly so well benefited as these seven counties," he said.
The winner of the bidding process also would pay income and sales taxes. In the drafted agreement, the company would pay for a much higher level of state police coverage and provide funding for a new state police post along the toll road, Daniels said.
Responding to criticism that the government promised the toll road would be free once it pays for construction, Daniels said those who made the promise are no longer around.
The toll road was built in 1956.
States such as Virginia, New Jersey, and Delaware are considering leasing their interstates to relieve their budget crunches. The more states that are involved, the harder it is for Indiana to get a return on its investment, he said.
"I thought it would be a terrible mistake to wait a year," he said.
Bids for the lease of the 157-mile thoroughfare are due by Friday, Jan. 20, the fastest timeline for any transaction this size, Daniels said. The decision whether to lease the toll road would be made that weekend.
Friday's visit was at least the third time Daniels has been in the area since he announced last year his Major Moves initiative, which recently found support among the trucking industry, organized labor and real estate agents.