Indiana legislation provides funding options
Indiana Gov. Mitch Daniels will sign legislation authorizing additional options for financing the Bridges Project. The governor told The Courier-Journal the legislation is "far-sighted" and provides "new tools and new possibilities" and Ind. State Rep. Steve Stemler, D-Jeffersonville said he believes the legislation will help accelerate the Bridges Project.
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Bridges Authority Meets March 4
10 a.m., Indiana University Southeast
University Center North, Hoosier Room
4201 Grant Line Road
New Albany, IN
For map and directions, click here.
Coalition announces leadership change
C.Edward Glasscock, the Coalition's Chairman, is stepping down after nearly three years of leadership and signficant progress on the Bridges Project. David Nicklies, a Coalition executive committee member who shares Glasscock's passion for Bridges Project completition as quickly as possible, is the new chairman.
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FHWA officials pledge flexibility, support for Bridges Project;
Decision to toll would not require delays
U.S. Transportation Secretary Ray LaHood, in Jeffersonville, IN., said the Bridges Project could be eligible for fedreal funding opportunities and "the time is right" to make the case. He urged continued cooperation and unity in developing project solutions.
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Bridges Authority begins Finance Plan development
The Louisville-Southern Indiana Bridges Authority has agreed to immediately pursue steps for developing a financing plan for the project, including updating project cost estimates and an earlier traffic study that focused on tolling options. Assessing legislative needs and advisory services relating to financing including private options and federal programs will also be addressed.
“It’s important to keep the momentum going. We don’t plan to hurry but we need to be quick,” said Authority Chairman Joe Prather at the start of the meeting on Feb. 10 which lasted nearly four hours at Louisville’s Muhammad Ali Center. The meeting was the first working session for the 14-member panel which conducted an organizational meeting the previous week.
Prather said the next meeting will be at 10 a.m. on March 4.
Authority Executive Director Steve Schultz said finance plan development work will begin immediately and he will consult with Kentucky and Indiana finance officials and others to gather as much information as possible before the next meeting. Schultz, who presented an overview of the authority’s role and governance structure, said he has been working closely with finance and transportation officials from both states and the project staff since he was named to his post on Feb. 2.
In opening reports to the authority, Schultz, a former general counsel to Indiana Gov. Mitch Daniels, said, “My task is to move the ball forward.”
Finance Plan Options
Jennifer Alvey, Indiana Public Finance Director and Tom Howard, executive director of the Kentucky Office of Financial Management, gave a presentation forcused on number funding option possibilities.
Potential funding sources include federal programs such as the Transportation Infrastructure Finance Innovation Act, known as TIFIA, which provides low-cost loans for up to one-third of a project’s costs. The National Infrastructure Innovation and Finance Fund (NIIFF), an Obama-administration proposal to establish a $4 billion infrastructure fund, was also cited. A federal program called “Build America Bonds,” part of the stimulus package, will cover 35 percent of taxable interest, which Howard said could provide significant savings. That program is to expire at the end of this year but an extension has been proposed that would cut the interest savings to 28 percent which Howard said would still provide significant savings.
Other options include state contributions, revenue bonds and private sector investment. The authority could also issue dedicated revenue bonds supported by toll revenues to finance a funding gap.
Other meeting highlights
- Authority member Joe Reagan presented a report on economic impacts of the project, referring to the Coalition’s economic analysis showing 56,000 new jobs during the construction phase alone and highlighting the project's importance for the region’s logistics and manufacturing industry which accounts for more than 147,000 jobs.
- A “Disadvantaged Business Enterprise” working group of authority members - Joe Reagan, Ben Richmond, David Tharp and Diane Fischer – was appointed by Prather to explore and address policies for engaging minority, women-owned and small businesses.
- During the public comment period, the authority heard from Jeffersonville Mayor Tom Galligan who urged progress as quickly as possible. “These bridges need to be built yesterday.” He described traffic congestion at peak hours on the Kennedy Bridge and the need for the project for economic development, saying “we are one economic development area.”
Governors call for action at bi-state authority meeting; executive director, officers selected
At the first meeting of the bi-state authority for the Bridges Project, Governors Steve Beshear and Mitch Daniels voiced confidence that a funding solution will be achieved and told reporters the project should be completed within 10 years.
Daniels told the authority, “This is not a drill. Decades of dreaming, scheming, hoping are over” and there are “bright prospects ahead of us.” He urged “moving at the speed of business, not the speed of government” and said the authority’s work could become a national model for funding major transportation projects.
Beshear said, “It’s time to turn the dream into a reality.” He called the meeting of the 14-member Authority that will develop the project’s long-term financing and construction plan “an unprecedented” and “historic” event.
The Authority appointed Steve Schultz of Columbus, Ind., executive director and named Joe Prather, former Kentucky Transportation Secretary, chairman of the Authority. Also appointed: Kerry Stemler, co-chairman; Charles Buddeke, treasurer; and Pat Byrne, secretary. The Authority will hold its next meeting on Feb. 10.
To read a new release from the governors about the meeting, click here.
Beshear's Two-Year budget includes $100 million for Bridges Project
Funding is in addition $231 million already authorized
Govenor Steve Beshar announced that his two-year budget proposal “dedicates an additional $50 million in federal highway funds each year for the Louisville bridges project. This is on top of the $231 million in GARVEE bonds already authorized.” He closed his budget address by mentioning several accomplishments, including legislation for bridges adopted last summer. Of the state’s challenges, he added, “I’m confident that – together – we can get the job done once again.”
To read the govenor's complete budget address, click here.
East End Bridge approach in Indiana features innovative, cost-saving design
A new interchange concept at IN-265 and IN-62 known as the "diverging diamond" is part of the design plan for the East End Bridge approach in Clark County, Indiana. The design will save $66 million while improving safety and traffic flow compared to a traditional cloverleaf interchange. Only one diverging diamond interchange has been built in the United States, but several are planned. To learn more about the interchange and access a video showing traffic navigation, click here.
Kentucky steps up land purchasing for project
With proceeds from $100 million in bonds, Kentucky is contacting property owners to purchase land downtown and in the East End for the Bridges Project. A total of 300 parcels in Kentucky and Indiana will be purchased and both states already have ownership of some of the properties. For details about right-of-way plans and maps, click here.