INDOT takes over troubled I-69 Section 5 project
INDIANAPOLIS, Ind.– The Indiana Department of Transportation (INDOT) regained control of the I-69 Section 5 project Monday.
INDOT announced a settlement transaction was completed to terminate the contract between I-69 Development Partners and the State. The developer’s bond holders are being reimbursed $246 million.
“The State is officially in charge of this important project,” Gov. Eric J. Holcomb said. “Our focus is to complete this crucial stretch of roadway that provides a promising path to economic growth for Hoosiers and businesses in southern Indiana.”
The troubled I-69 project runs from Bloomington to Martinsville.
The Indiana Finance Authority (IFA) announced the settlement last month. Officials say since that time, the financing plan to complete the transaction was approved by the State Budget Committee.
IFA Public Finance Director Dan Huge said his agency will use highway-revenue bonds to retire the developer’s private-activity bonds.
INDOT says those highway-revenue bonds are rated at AA+ according to statements previously issued by S&P Global, Fitch Ratings and Moody’s Investor Services. This rating is higher and more advantageous to the State than the BBB- rating assigned to the developer’s private-activity bonds. Officials say it will result in interest savings over time.
The 21-mile project is expected to be complete on or before August 2018.
“The INDOT project team alongside Walsh Construction accomplished in a few weeks what normally would take many months, and they did it while accelerating the current pace of work along the corridor,” INDOT Commissioner Joe McGuinness said. “We have INDOT staff on the ground today working with a team of partners ready to complete this section of the interstate.”
INDOT was able to keep more than a dozen subcontractor agreements to retain most of the primary and subcontractors who worked on the project under the previous arrangement.
McGuiness said retaining that experience is invaluable in moving the project forward to completion.