The state has officially taken over the Interstate 69 Section 5 project from I-69 Development Partners.
The Indiana Finance Authority announced it had reached an agreement with the private developer in June to take over construction, operation and maintenance of the project after several delays in the completion schedule. To officially take control of the project, the Indiana State Budget Committee had to approve the plans. Additionally, all parties had to endorse a settlement agreement and bondholders had to be paid in full.
The finance authority announced Monday it had completed the settlement transaction to terminate the contract with I-69 Development Partners and reimburse bondholders for $246 million.
“The state is officially in charge of this important project,” Gov. Eric Holcomb said in a press release. “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 state hired a private development company called I-69 Development Partners — formed specifically for the Section 5 project — in 2014 to finance, design, build, operate and maintain that crucial stretch of roadway. The state estimated upgrading 21 miles of Ind. 37 from Rockport Road in Monroe County to the Indian Creek bridge in Morgan County would cost about $347 million. I-69 Development Partners submitted the winning bid of $325 million, claiming construction would be substantially complete by Oct. 31, 2016. The private developer was responsible for coming up with the initial financing and the state would make annual operations and maintenance payments for 35 years after completion.