Update on I-69 Extension in Indiana

[andy]

To comply with NEPA, INDOT has to show that they've done their due-diligence in determining that following SR-37 would be the best course of action to complete I-69 to Indianapolis.   The only real way to do that is to conduct environmental analysis of a series of alternatives in addition to the SR-37 routing, all of which are compared against the "No-Build" alternative that serves as a baseline upon which to measure all of the "build" alternatives.  The environmental studies ongoing for Section 6 will likely arrive at the same conclusion that supports following SR-37 to 465, but INDOT will at least have the documentation showing compliance with NEPA should there be any more lawsuits to stop the project.

Maybe I'm hunting for sunshine here, but I wonder how much data collected for the I-69 study could be used for other purposes. Particularly in the Mooresville area.

[silverback1065]

one other thing I forgot to mention, the INDOT guys said the weird routes that hit 65 were only there due to consideration of the useless "commerce connector outer loop" that will never happen. 

[thefro]

There's an open house on Tuesday on the Section 5 progress in Bloomington.  I'd guess we might get some updates on the website at that point.

http://www.wbiw.com/local/archive/2016/03/i-69-development-partners-host-public-open-house-for-section-5.php

(BLOOMINGTON) - The I-69 Development Partners will host a public open house regarding the construction of I-69 Section 5, between Bloomington and Martinsville currently in progress.

The purpose of this open house is to update the public about construction progress, answer questions and to share planned next steps.

The public open house for I-69 Section 5 will be held on Tuesday from 6 p.m. till 7:30 p.m. at the Holiday Inn, 1710 Kinser Pike in Bloomington.

This informational open house format will provide attendees the opportunity to view displays and meet members of the project team. There will be no formal presentation.

Also, we have this quote from Will Wingfield of INDOT from an article on Friday on the timeline

http://www.washtimesherald.com/news/local_news/next-phase-of-i--should-wrap-this-year/article_e750a231-9d04-57e9-88f2-9a849e54df2f.html

Still officials believe the bulk of the project will be finished in the coming months.

"The contractor has a pretty aggressive deadline for the projects," said Wingfield. "I anticipate they will get almost all of it completed this year, and possibly come back next spring to finish it off."

[thefro]

The I-69 Section 5 site has updated with a new newsletter

-Added Travel Lanes from That Road to SR 46 in each direction along
with new concrete median barrier — anticipate completion by early
summer 2016
- Mainline Improvements and Access Roads from just south of Chambers
Pike to the northern end of the project — anticipate completion by late
2016
- Fullerton Pike Interchange with roundabout intersections and road
work — anticipate completion by spring 2016
- Vernal Pike Bridge and road work - anticipate completion by spring
2016
- Kinser Pike road work — anticipate completion by spring 2016
- Bryants Creek Bridge for northbound lanes — anticipate completion by
spring 2016
- Utility Relocations throughout the project limits — anticipate
completion by 2016
- Snow Removal — I-69 DP conducts snow removal/treats roads
immediately upon snowstorm events and ensures roads remain
open for traffic
- Tree Clearing — more trees to be removed by March 31, 2016

Sound Walls at three locations (refer to exhibit on back side)
— anticipate to start by winter 2016 and complete by summer 2016
- Tapp Road Interchange with roundabout intersections and road work
— anticipate to start by summer 2016 and complete by end of 2016
- CSX Railroad Bridge Widening — anticipate to start by late winter
2016 and complete by summer 2016
- Sample Road interchange with roundabout intersections — anticipate
to begin by late winter 2016 and complete by late summer 2016
- Chambers Pike Bridge — anticipate to begin by spring 2016 and
complete by late summer 2016
- Liberty Church Road interchange — anticipate to begin by spring
2016 and complete by end of 2016
- Mainline Improvements and Access Roads from SR 46 to just south
of Chambers Pike, Sample Road to Chambers Pike, and Turkey Track
Road to Indian Creek — anticipate to begin by late winter 2016 and
complete by end of summer 2016

[Rick Powell]

Potential narrowing of the alternatives?

http://www.heraldcourier.com/news/indot-scheduled-to-reduce-possible-number-of-i--routes/article_e12ad54e-92d1-58df-8c20-1f684471362a.html

[ysuindy]

Indy Star reporting the SR 37 option has been chosen

http://www.indystar.com/story/news/2016/03/29/ind-37-chosen-last-leg--69/82177650/

[Captain Jack]

https://twitter.com/ryanmartin/status/714841424475340801

[silverback1065]

this was a surprise to 0 people

[EngineerTM]

Nice to read that the corridor has finally been selected.  I agree that the decision to follow SR 37 was not a surprise to anyone who has been paying attention.  Read the Indy Star story and was still disappointed that construction will likely not start until 2020 or so, and that this final leg may not be open to traffic until the mid 2020's.  The entire I-69 route has taken way too long.

[mvak36]

Good news. So if they start construction on this segment in 2020, how long would it take to complete? 2-3 years?

[codyg1985]

Nice to read that the corridor has finally been selected.  I agree that the decision to follow SR 37 was not a surprise to anyone who has been paying attention.  Read the Indy Star story and was still disappointed that construction will likely not start until 2020 or so, and that this final leg may not be open to traffic until the mid 2020's.  The entire I-69 route has taken way too long.

At least there is tangible and steady progress in Indiana. The same can't be said in the states in the middle of the route.

[mvak36]

At least there is tangible and steady progress in Indiana. The same can't be said in the states in the middle of the route.

Agree. I hope that once all the construction is done in Louisville at the end of this year, both Indiana and Kentucky will start working on the environmental studies, funding, etc., for the I-69 Ohio River Bridge.

[abqtraveler]

Nice to read that the corridor has finally been selected.  I agree that the decision to follow SR 37 was not a surprise to anyone who has been paying attention.  Read the Indy Star story and was still disappointed that construction will likely not start until 2020 or so, and that this final leg may not be open to traffic until the mid 2020's.  The entire I-69 route has taken way too long.

At least there is tangible and steady progress in Indiana. The same can't be said in the states in the middle of the route.

It would be really hard to argue against I-69 following SR-37 to I-465, given that the other four options would have been mostly new-terrain alignments north of Martinsville that would have caused much more disruption to the surrounding communities and environment and be more costly to build.  Unfortunately, any alignment was was to be selected would leave someone unhappy.

[EngineerTM]

Good news. So if they start construction on this segment in 2020, how long would it take to complete? 2-3 years?

That's probably a fairly accurate estimate.  Closest comparison would be the work being done in Section 5, where they are converting SR 37 to interstate standards under constant traffic with some of the work being done in an urban/built-up area.  The public-private development partners started construction in 2014 and they are "scheduled" to be done with Section 5 by the end of 2016.  However, I still think that some of this work will spill into early 2017.

I wonder if INDOT will do Section 6 in the traditional manner, or if they will make Section 6 a Public-Private-Partnership deal as well.

[EngineerTM]

At least there is tangible and steady progress in Indiana. The same can't be said in the states in the middle of the route.

Agree. I hope that once all the construction is done in Louisville at the end of this year, both Indiana and Kentucky will start working on the environmental studies, funding, etc., for the I-69 Ohio River Bridge.

From what I've been able to gather, Kentucky's new governor is pushing hard to get this new I-69 bridge moving as soon as possible.  The new budget already earmarked funding to begin the new work on the EIS in 2018 (I think).  The folks over at I-69 Bridge Link are really excited to see how much backing this has recently received.  Apparently the new governor is an enthusiastic supporter.

[mvak36]

From what I've been able to gather, Kentucky's new governor is pushing hard to get this new I-69 bridge moving as soon as possible.  The new budget already earmarked funding to begin the new work on the EIS in 2018 (I think).  The folks over at I-69 Bridge Link are really excited to see how much backing this has recently received.  Apparently the new governor is an enthusiastic supporter.

Good news. Not too far away 

[theline]

Good news. So if they start construction on this segment in 2020, how long would it take to complete? 2-3 years?

That's probably a fairly accurate estimate.  Closest comparison would be the work being done in Section 5, where they are converting SR 37 to interstate standards under constant traffic with some of the work being done in an urban/built-up area.  The public-private development partners started construction in 2014 and they are "scheduled" to be done with Section 5 by the end of 2016.  However, I still think that some of this work will spill into early 2017.

I wonder if INDOT will do Section 6 in the traditional manner, or if they will make Section 6 a Public-Private-Partnership deal as well.

My guess is that they will go with a PPP. That's the only way to get it done within 3 or so years. If they go any other way to finance it, they'll have to string out construction over a decade or more, as funds become available. I think there will be a lot of support to get it done as fast as possible to relieve the congestion on SR-37. That situation will continue to get worse with the extra traffic that 69 will generate.

[Great Lakes Roads]

Here is a video on the update on Section 6 of I-69 between Indianapolis to Evansville.

https://www.youtube.com/watch?v=UihY8r6UMSI

[vdeane]

How does the private company make money if there are no tolls?  They're not going to spend money on the project without something in return, so what is that something?

[andy]

How does the private company make money if there are no tolls?  They're not going to spend money on the project without something in return, so what is that something?

My understanding is they are paid over time for maintenance. The assumed incentive is a long term contract with well managed construction and maintenance can be cost effective for the contractor and more sensible for the government which can be burned by short-term low bid awards.

[Rick Powell]

How does the private company make money if there are no tolls?  They're not going to spend money on the project without something in return, so what is that something?

Another possibility is that the P3 developer is also the financier as well as the designer and constructor...so instead of having to come up with all the money at once, the state makes payments over a period of several years, thus not incurring the "hit" over one or 2 years of the annual program as would be the case with normal pay-as-you-build construction.  Design fee, construction, profit and interest are all built into the payments.  Maintenance could stay with INDOT in this case, unless there are warrantees on pavement performance, etc.  There are a number of ways to structure a P3, and different ways the developer gets paid in each.

[thefro]

How does the private company make money if there are no tolls?  They're not going to spend money on the project without something in return, so what is that something?

Another possibility is that the P3 developer is also the financier as well as the designer and constructor...so instead of having to come up with all the money at once, the state makes payments over a period of several years, thus not incurring the "hit" over one or 2 years of the annual program as would be the case with normal pay-as-you-build construction.  Design fee, construction, profit and interest are all built into the payments.  Maintenance could stay with INDOT in this case, unless there are warrantees on pavement performance, etc.  There are a number of ways to structure a P3, and different ways the developer gets paid in each.

That's what they're doing with Section 5, although the developer is also in charge of maintenance/snow removal for the 35 year period after the project is complete.  So the company that finances the construction can make money off all that as well as the financing.

It seems to have led to a better project in the short-term.  You'd have to weigh how much INDOT's payments are versus the economic impact of having the road built now instead of later to judge the long-term impact as opposed to having INDOT pay for it at once.

[TravelingBethelite]

Here is a video on the update on Section 6 of I-69 between Indianapolis to Evansville.

https://www.youtube.com/watch?v=UihY8r6UMSI

Article about this:

http://www.indystar.com/story/news/2016/03/29/ind-37-chosen-last-leg--69/82177650/

[silverback1065]

It sucks to have to move your house or business due to construction, but I don't feel bad for the new construction houses and buildings in the area, they should have known this was a very high possibility. Either way, noone will be happy whichever route was taken.

[abqtraveler]

How does the private company make money if there are no tolls?  They're not going to spend money on the project without something in return, so what is that something?

Another possibility is that the P3 developer is also the financier as well as the designer and constructor...so instead of having to come up with all the money at once, the state makes payments over a period of several years, thus not incurring the "hit" over one or 2 years of the annual program as would be the case with normal pay-as-you-build construction.  Design fee, construction, profit and interest are all built into the payments.  Maintenance could stay with INDOT in this case, unless there are warrantees on pavement performance, etc.  There are a number of ways to structure a P3, and different ways the developer gets paid in each.

That's what they're doing with Section 5, although the developer is also in charge of maintenance/snow removal for the 35 year period after the project is complete.  So the company that finances the construction can make money off all that as well as the financing.

It seems to have led to a better project in the short-term.  You'd have to weigh how much INDOT's payments are versus the economic impact of having the road built now instead of later to judge the long-term impact as opposed to having INDOT pay for it at once.

If you believe in the concept that industry can do something better and more efficiently than any government agency can, then the P3/DBFOM model would work well to that end.  The reason tolls aren't needed because the firms selected to design, build, finance, operate and maintain I-69 would be compensated through "availability payments,"which are rolled into the annual INDOT budget.  That is, the state compensates the contractor over a specified amount of time for construction and maintenance of the highway.  Part of the agreement between the government and the contractor is that a certain amount is deducted from the contractor's payment for any time where the highway fails to meet specific performance specifications.

This model can be advantageous since one contractor (rather than multiple contractors) will be overseeing the entire acquisition lifecycle of the highway, from design to construction, to operations and maintenance, which reduces the Government's cost for managing and administering multiple contracts for the same facility.  Since a private company is motivated to garner or retain business and maximize profit, while the Government's motivation is to get what it wants at the lowest practicable cost, it would make sense to have a P3 arrangement where the cost of building the highway is reduced through efficiencies gained by tapping the private sector to accomplish what have historically been Government functions.  In return the Government reaps a net savings on design, construction, and maintenance of the highway, while the Contractor has the opportunity to implement process efficiencies over the life of the P3 arrangement, thereby increasing its profit margin with no added cost to the taxpayer or degradation in the quality of the products and services the Contractor provides.