Update on I-69 Extension in Indiana

[ITB]

Another set. Again, photos were taken September 8, 2016, unless otherwise noted.


The overpass that will carry Fullerton Road over State Road 37 (future Interstate 69) in Monroe County, Indiana; looking north from the Rockport Road overpass. Visible on the right is initial work to shape the northbound exit ramp to Fullerton Road.


Another perspective from the Rockport Road overpass toward the Fullerton Road overpass; looking north. From this point northward, State Road 37 (future I-69) will have three lanes in each direction for a total distance of about 11 1/2 miles. The additional lanes are being carved from the roadway median with a concrete barrier wall (pictured) to maintain traffic separation. The concrete barrier wall will end at the SR 37/SR 46 interchange, and between that point and the future Sample Road interchange to the north, a cable barrier will be installed instead.


Storm drains near the concrete median barrier of State Road 37 (future I-69) near the Rockport Road overpass in Monroe County, Indiana; looking north.


The State Road 37/Tapp Road intersection in Monroe County, Indiana; looking south. In the background is the Fullerton Pike work zone, where work to build an overpass and interchange is ongoing. Visible is heavy equipment lined up on the overpass approach, but now idle due to the subcontractor walk off.


Another view of the SR 37/Tapp Road intersection; looking south.


Sound Wall #2 on the east side of SR 37 between 2nd Street and Tapp Road in Bloomington. Construction of the wall has apparently ceased as no work has occurred in nearly a month. Another walk off?


One last look at SR 37 and the Fullerton Road overpass; looking north from the Rockport Road overpass.

[ITB]

Here's some pics from late last month. Photos were taken August 30, 2016 unless otherwise noted.


Initial work at the location of the future I-69/Sample Road interchange in Monroe County, Indiana; looking east. The grading work on the right is for a new access road that will tie in with the interchange via a roundabout. The access road will extend south for about a half mile. The location of the red pickup truck is roughly where the roundabout will be built. Extending north (left) from the roundabout will be the entrance and exit ramps for southbound Interstate 69.


Another perspective of work at the Sample Road work zone; looking east.


Fill work at the Fullerton Road work zone where construction for the new overpass and interchange are entering the final phases; looking northeast. This is the spot where the interchange's western roundabout will be built. The entrance and exit ramps for southbound I-69, which will link into the roundabout, will be located where the earth mound is at left. Keep in mind that the ground in the foreground will be substantially built up, perhaps as high as 10 or 12 feet. The overpass that will carry Fullerton Road over State Road 37 (future I-69) is off to the right out of view.


This is the same location as depicted in the photo above, but exactly one week later, September 6. Crews have excavated the area where the roundabout will be located. It's likely drainage structures will be placed before the ground is built up, but exactly what they're doing at this stage is not truly known. Due to the subcontractor work stoppage, the heavy equipment has been lined up in orderly fashion but lies idle.


The scene at the Fullerton Road work zone at the end of August before the present work stoppage; looking northeast. In the background is the overpass that will carry Fullerton Road over SR 37 (future I-69).


Another photo depicting work at Fullerton at end of August; looking northeast.


And lastly, an expansive view of the work zone for the future Interstate 69/Sample Road interchange; looking east. State Road 37 is visible in the background near the service station and convenience store (right). Sample Road can be partially seen on the far left. The work underway in the foreground is to build up the ground for a new access road to serve the residences and businesses west of the future Interstate. The access road will link into the I-69/Sample Road interchange at a roundabout located about where the red pickup truck is located.

Also, in this vicinity, a completely new section of mainline roadway will be constructed. This new stretch of roadway will become the future southbound lanes of Interstate 69. The current southbound lanes of State Road 37 will then become the northbound lanes of the interstate, while the current northbound of lanes of SR 37 will be turned into an access road to serve the businesses and residential developments east of the interstate.

[ITB]

For those of you who aren't aware of my Flickr page, and for those who are but rarely visit, here's a sampling of photos that were taken between June and September 2016. Individual pictures will be dated in the captions.

https://www.flickr.com/photos/132926214@N07/


Looking east toward the future Vernal Pike roadway and overpass (background) over State Road 37 (future Interstate 69) in Bloomington, Monroe County, Indiana. The structure in the foreground is a pre-fab ConSpan bridge, one of the first major elements of Section 5 work. It appears there has been a late design change as the roadway has been torn up to install a storm sewer conduit. Photo: August 25.


The short connector road between Fullerton Road and S. Monroe Medical Park Blvd. in Monroe County, Indiana, just after paving; looking west. This road, which had to be completed before the Fullerton Road/S. Monroe Medical intersection could be sealed off, is now open to traffic. Photo: August 12.


State Road 37 and the three mainline bridges that are undergoing expansion from two to three lanes; looking north from the Kinser Pike overpass. The bridges, from south to north, cross (1) Griffy Creek [foreground], (2) Beanblossom Creek [just beyond the yellow gantry crane], and (3) Beanblossom Overflow [beyond the N. Walnut Street overpass]. Sample Road, where a new interchange will be built, is just past the crest of the hill in the background. Photo: August 6.


The Kinser Pike overpass and newly paved roadway; looking northwest. The top layer of asphalt still remains to be applied. Another subcontractor walk off, perhaps? Photo: August 6.


Another view of the new Kinser Pike roadway; looking east from the Kinser Pike overpass. Photo: August 6.


South of the Fullerton Road overpass, construction of median barrier wall on State Road 37; looking north from the Rockport Road overpass. Photo: June 29.


The W. Arlington Road bridge over SR 37; looking northwest. At the time of the photo, the bridge was in the process of being raised to meet interstate standards. That work has been completed and the bridge is open to traffic. Photo: June 11.


Another perspective of the W. Arlington Road bridge; looking west. The white tubing carries cable, telephone and electricity, and is attached underneath the bridge. Photo: June 11.


Another view of the bridge work underway on SR 37 at Griffy and Beanblossom creeks; looking northeast. Photo: August 6.


An excavator sits atop earthwork near the overpass that will take Fullerton Road over SR 37 (future I-69); looking east. Photo: August 22.

[wanderer2575]

Nice photos, thanks!  I'm seriously thinking about taking a day off work in the next couple weeks to roadtrip from metro Detroit to Washington IN and back, largely to see IN-37 in mid-transformation.

[US 41]

Are they going to install lights along SR 37 from the I-69/37 split up to SR 46 (like they do currently between 45 and 48)? I would think that they would.

[silverback1065]

From Indy Star

I-69 Section 5 project pushed back again

http://www.courierpress.com/story/news/local/2016/09/20/-69-section-5-project-pushed-back-again/90727512/

INDIANAPOLIS -- Completion on Section 5 of Intestate 69 has been pushed back yet again, this time to October 2017, amid concerns that the lead contractor is still behind on payments to subcontractors.Indiana Finance Authority Finance Director Dan Huge testified before the Interim Roads and Transportation Committee on Tuesday, giving them an update on the 21-mile construction project from Bloomington to Martinsville. Huge said the lead contractor on the project, Isolux Corsan, is still in violation due to missed payments and has until Oct. 3 to remedy the situation."We're not happy (that) subcontractors aren't being paid," Huge said. "There's no excuse for not paying the (subcontractors) and that's what we are holding them accountable for."

[vdeane]

This is a good example of why public private partnerships are a bad idea.

[silverback1065]

This is a good example of why public private partnerships are a bad idea.

I'd say mostly, but not completely, some turn out good, some not so much.

[seicer]

Re: Indiana Toll Road
Re: I-126 Toll Road (whatever it's now called)

[NWI_Irish96]

I'm taking a (very) out of the way route to Elkhart on 10/8 in order to clinch US 231 between Dale and Loogootee and I-69 from Washington to Bloomington, and to check out the construction north of Bloomington.

[compdude787]

Re: Indiana Toll Road
Re: I-126 Toll Road (whatever it's now called)

Huh? Are you saying that those are public-private partnerships?

[Rothman]

Re: Indiana Toll Road
Re: I-126 Toll Road (whatever it's now called)

Huh? Are you saying that those are public-private partnerships?

Those were only two PPPs that failed spectacularly.  At least in terms of the Indiana Toll Road, Indiana sold it for a pile of magic beans:  The operator took Indiana's money, hiked tolls considerably, and then declared bankruptcy and ran laughing all the way to the bank.

[Bobby5280]

Yeah they probably ran laughing all the way to the bank while selling more propaganda about the evils of socialism and how anything government run is a bad idea.

[Life in Paradise]

In the case of the Indiana Toll Road, no one wanted to take the responsibility to raise the tolls to a level they felt needed to be raised to pay for the maintenance, etc of the road, and they didn't want to drop it back onto the taxpayers.  A large portion of the traffic on the ITR is not Indiana based (as far as I can tell), and that's one way to pull money from other states.  They get someone to blame for higher rates and then also get a bunch of money to pay for highway projects around the state.  If the private partnership declares bankruptcy, Indiana already has the money, and then gets the Toll Road at the updated toll rates.  Except for perhaps difficulties during the bankruptcy, I see more upside to the whole deal than not.  Indiana did this at a very opportune time 10+ years ago.  If they tried that today, they would be offered less than half of what they received.

[silverback1065]

In the case of the Indiana Toll Road, no one wanted to take the responsibility to raise the tolls to a level they felt needed to be raised to pay for the maintenance, etc of the road, and they didn't want to drop it back onto the taxpayers.  A large portion of the traffic on the ITR is not Indiana based (as far as I can tell), and that's one way to pull money from other states.  They get someone to blame for higher rates and then also get a bunch of money to pay for highway projects around the state.  If the private partnership declares bankruptcy, Indiana already has the money, and then gets the Toll Road at the updated toll rates.  Except for perhaps difficulties during the bankruptcy, I see more upside to the whole deal than not.  Indiana did this at a very opportune time 10+ years ago.  If they tried that today, they would be offered less than half of what they received.

quite possibly the greatest deal ever, for indiana when it comes to the money

[vdeane]

Meanwhile, the Indiana Toll Road is significantly less well maintained than it was before, and Indiana is banned by contract from improving east-west roads within 10-20 miles of the toll road.

[ITB]

Meanwhile, the Indiana Toll Road is significantly less well maintained than it was before ...

According to whom? Do you have any evidence to support this statement?

... and Indiana is banned by contract from improving east-west roads within 10-20 miles of the toll road.

Certainly, there are contractual provisions to prohibit the state of Indiana from expanding and improving east-west roads within a certain distance from the toll road. That's proper and only fair to the concessionaire.

Re: Indiana Toll Road
Re: I-126 Toll Road (whatever it's now called)

Huh? Are you saying that those are public-private partnerships?

Those were only two PPPs that failed spectacularly.  At least in terms of the Indiana Toll Road, Indiana sold it for a pile of magic beans:  The operator took Indiana's money, hiked tolls considerably, and then declared bankruptcy and ran laughing all the way to the bank.

Cintra—Macquarie, the joint venture that entered the P3 toll road lease agreement, paid the state of Indiana $3,800,000,000, in cash. To raise that money, they borrowed a huge sum. Unfortunately, when the great recession hit and toll revenues fell because of declining traffic, Cintra—Macquarie was unable to meet its debt obligations. So they turned to the bankruptcy courts for relief. As it turned out, luck was on their side, and they were able to sell the lease concession for big bucks to get out of the deal without any great loss, or even, perhaps, a profit.

The amount that tolls can be increased per year is firmly set in the P3 agreement. So, no, they didn't just "jack up" the tolls on a whim. In fact, for 2-axle vehicles using an E-ZPass transponder (Indiana, Illinois, and Ohio), the cost of the full 157- mile trip is the same as it was in 1985–$4.65. Now, for those paying cash, it's a lot higher. So a good deal for the residents of Indiana, Illinois and Ohio, as well as others using E-ZPass.

Source: http://www.in.gov/ifa/files/Toll_Road_Rates_2015(1).pdf

Indiana hasn't been "losing" on its P3 deals, not by a long shot. To be sure, the pluses and minuses of P3 agreements won't be truly clear until a few deals begin to wind down several years from now, with the results carefully analyzed.

For those interested, here's the link to the official Indiana Toll Road P3 agreement:

http://www.in.gov/ifa/files/4-12-06-Concession-Lease-Agreement.pdf

And here's the link to all the amendments and operating standards manuals:

http://www.in.gov/ifa/2328.htm

[silverback1065]

Meanwhile, the Indiana Toll Road is significantly less well maintained than it was before, and Indiana is banned by contract from improving east-west roads within 10-20 miles of the toll road.

so this means US 20 can never be upgraded? 

[seicer]

And the state did nothing to get the money it was owed from the bankrupt operator. Here is the kicker:

""In 2005, the year before the road was leased, the state of Indiana did not collect sufficient tolls to support basic road treatments, or repair the deteriorating conditions of the highway and bridges," she wrote. "These improvements could not have been undertaken within INDOT's budget without neglecting other parts of the state highway system."

Indiana officials, however, hadn't increased tolls for 20 years before then-Gov. Mitch Daniels pushed the 2006 deal under which ITR's parent company, the Spanish-Australian consortium Cintra-Macquarie, paid the state $3.8 billion upfront for a 75-year lease of the highway."

--

ITR has more than doubled tolls for cash users and while it is rebuilding significant portions of the roadway, it's still in poor condition. Does anyone remember the South Bay Expressway, originally operated by ITR co-owner Macquarie (that also went bankrupt - and a loss of 42% for taxpayers)? Or California Toll Road 91 that went bankrupt and required $200 million from public dollars to keep it open? Here is one of the reasons why.

--

This book is a great read on the pitfalls and successes of privitizating public assets.

[ITB]

And the state did nothing to get the money it was owed from the bankrupt operator. Here is the kicker:

""In 2005, the year before the road was leased, the state of Indiana did not collect sufficient tolls to support basic road treatments, or repair the deteriorating conditions of the highway and bridges," she wrote. "These improvements could not have been undertaken within INDOT's budget without neglecting other parts of the state highway system."

I read and reread the article you referenced above. There isn't any mention whatsoever that the state of Indiana is owed money from the Indiana Toll Road concessionaire. Perhaps you intended to link to another source.

As for "the kicker," what kicker? There's no smoke there at all. That quote from Kendall York, IFA's director of finance, is simply stating fact: That prior to the Indiana Toll Road lease, the state of Indiana was not collecting enough toll revenues to offset the necessary expenditures to maintain the road as it needed to be. Maybe I'm missing something, but I fail to see how this can be misconstrued as a misstep by INDOT or the state of Indiana.

I'm no expert on financial matters by any stretch, but I sense a failure by some to fully understand the nuances of public-private partnerships. To be sure, they can be complex and a challenge to figure out who might be coming out ahead.

As for the Indiana Toll Road deal, it seems the state of Indiana is winning by almost any measure. The first entity awarded the concession, Cintra—Macquarie, failed because their number crunchers dropped the ball by underestimating risk. They were able to exit the deal via bankruptcy court when the concession was sold. The buyer, ITR Concession Co., also ran into debt problems, and it, too, turned to the bankruptcy court for relief. Through the court, it was able to restructure; that is, they were able to force their creditors–the banks and private equity funds that put up the money to acquire the concession–to refinance the debt or, to put it to more bluntly, to take a financial hit.

The Indiana Toll Road public-private partnership is still in effect. It's now 10 years old, with 65 more years to go. If the concessionaire fails in any way to uphold its end of the P3 agreement, the state of Indiana has recourse to "step in" and resume control of the toll road. One of stipulations of the agreement is the concessionaire is required to spend a minimum of $600,000,000 to maintain the road. It's even possible the concessionaire might have to spend double or triple that if the road and its numerous bridges deteriorate more rapidly than expected. It's not Indiana's problem anymore, it's the concessionaire's.

And, let's repeat once more for emphasis: If the toll road concessionaire, whoever that might be, fails in its obligations under the P3 agreement, the state of Indiana can terminate the agreement and retake control of the road. The state was paid 3,800,000,000 upfront in 2006. That's keepers. While the state has the right to retake the road on default of the concessionaire, it may be reluctant to do so because the P3 deal appears to looking better and better with each passing year.

Finally, a few words about tolls. It's a double-edged sword. If too high, road users may begin to look for alternatives. Nobody is forcing anyone to drive the Indiana Toll Road.

[vdeane]

Meanwhile, the Indiana Toll Road is significantly less well maintained than it was before ...

According to whom? Do you have any evidence to support this statement?

I seem to recall there being many mentions of declining pavement quality and service plaza condition on this forum and the Facebook groups.

Certainly, there are contractual provisions to prohibit the state of Indiana from expanding and improving east-west roads within a certain distance from the toll road. That's proper and only fair to the concessionaire.

Great for the concessionaire's profits... not so great for the people who use the road and have to drive on something that's not as good as it otherwise would be just to protect a private company's profits.  I prefer to put the experience of real people first.

so this means US 20 can never be upgraded? 

Correct.

[tdindy88]

At least with the service areas and pavement that problem is being rectified what with the construction that went from Portage to South Bend this year and on toward Elkhart next year. With the plan to update the service areas as well this is a problem that will be taken care of in the future.

As for the actual Interstate 69. The P3 situation hasn't played itself out well but some sick twisted part of me thinks that three years to rebuild all of SR 37 from Bloomington to Martinsville through the hilly terrain with all new bridges and exits is better than it could be. It took the state five years to do US 31 through Hamilton County on much flatter terrain (of course there was no funding problems like here.) I always believed that late 2016 was far too realistic of a goal. Of course, if the deadline is pushed back further to 2018 or 2019 then I will kindly shut up.

[theline]

Meanwhile, the Indiana Toll Road is significantly less well maintained than it was before ...

According to whom? Do you have any evidence to support this statement?

I seem to recall there being many mentions of declining pavement quality and service plaza condition on this forum and the Facebook groups.

As one of those who has made comments on this forum about the deteriorating condition of the ITR and as one who has driven it regularly for decades, I can confirm that there was a great decline of the pavement and service plaza quality from what we had learned to expect. It should be pointed out that the decline began well before the lease arrangement took effect, while the Toll Road Commission was in change. This was no doubt at least partly the result of the toll rates that were too low.

During management by the first concessionaire, little was done to improve the situation. One can assume that the financial condition of that organization played a major role. The repaving and plans to replace the service plazas over the next few years give me hope that the new concessionaire will bring the ITR back to where it used to be.

I was opposed to the initial lease of the road, under the general principal that public infrastructure is managed best by the public, but I'm hoping for the best about the ITR. The PPP portion of I-69, on the other hand, is not leaving with a warm, fuzzy feeling, considering recent developments.

[AsphaltPlanet]

so this means US 20 can never be upgraded? 

Correct.

Does it though?  I think that would depend upon the specific language that has been used in the contract.

The 407 contract also has a non-compete clause in it, and various local and provincial highways have been upgraded in it's vicinity since it was privatized.

I'm not writing this to be either for or against the privatization of the Indiana Toll Road, but you'd need a legal interpretation to determine what the potential fallout for US-20 or other surrounding corridors would be based upon the contract that was entered into.

"Correct" is meaningless and misleading in this case.

[silverback1065]

A person i know at indot said they were looking at putting an interchange at US 20 and SR 2