State, Developer Clear I-69 Funding MilestonePosted: Updated:
The state of Indiana and a private development team have reached the financial close of the I-69 extension between Bloomington and Martinsville. The Indiana Finance Authority has sold more than $240 million in bonds on behalf of I-69 Development Partners. July 24, 2014
INDIANAPOLIS, Ind. - The Indiana Finance Authority and I-69 Development Partners have completed the sale of tax-exempt, private-activity bonds and reached financial close on I-69 Section 5 from Bloomington to Martinsville.
Earlier this month, the IFA sold nearly $244 million in private-activity bonds on behalf of the private developer, which will then repay the bond holders directly. I-69 Development Partners is investing more than $40 million of its own funds and is responsible for all construction costs and the risks associated longer term with the operations and maintenance of I-69 Section 5.
"We encouraged the proposers to approach the design, construction, finance, operation and maintenance of I-69 Section 5 in a way that maximizes the value to the taxpayers while still delivering a quality product," said Indiana Public Finance Director Kendra York. "Competition resulted in a proposal from I-69 Development Partners that met all project objectives while providing the state and the taxpayers with an extremely competitive bid."
The state's payment structure requires the developer to meet performance standards for quality, maintenance and on-schedule completion of safety improvements in Bloomington, such as interchanges at Fullerton Pike and Tapp Road, and overpasses at Vernal Pike and Rockport Road.
About Interstate 69
The new I-69 between Evansville and Indianapolis is a key component to the future economic vitality of southwestern Indiana, and will connect an entire region with improved access to jobs, education and healthcare.
The 142-mile I-69 corridor is divided into six sections. The first three sections opened for business in November 2012, saving motorists more than 30 minutes of travel time between Evansville and Crane. Construction is underway on all 27 miles of I-69 Section 4 between Crane and Bloomington.
I-69 Section 5 involves rehabbing and upgrading 21 miles of the existing, four-lane State Road 37 to interstate standards. I-69 Development Partners expects to begin construction in the Bloomington area this fall and open the 21 new miles of interstate by the end of 2016.
More information about the I-69 Evansville to Indianapolis project may be found at www.i69indyevn.org.
Source: The Indiana Department of Transportation