December 17, 2010

News Release

The Louisville and Southern Indiana Bridges Authority approved a plan today on an updated financial plan that outlines revised cost estimates and alternative construction and financing options for the multi-billion dollar project, which involves building two new Ohio River bridges and reconstructing the Kennedy Interchange.

The updated plan was presented and approved by the Kentucky Public Transportation Infrastructure Authority (KIPTIA) with a recommendation that it be submitted to the Federal Highway Administration, as required by Kentucky legislation enacted earlier this year.

A draft of the financial plan update was presented to Authority members last week for review before today’s vote. The update was also posted for public review on the Authority’s website, and copies were made available at a public information and input session held Monday at the Muhammad Ali Center.

Fulfilling this requirement is a milestone for the Authority on the path toward reaching a target to begin construction on the project by August 2012.

The updated financial plan summarizes funds expected to be available for the project. According to the update, roughly half of the $4.1 billion project cost will be provided through federal and state transportation program funds, with the balance being covered through user fees, or tolls. While tolling has been discussed by the Authority as a potential revenue source, the updated financial plan officially recognizes the use of tolls as way to cover the funding gap. The plan also addresses potential project delivery approaches to help achieve the stated financial and schedule objectives.

The update does not specify a toll rate or which bridges will be tolled. Those decisions cannot be made until expected federal guidance on tolling eligibility is received and until a time-of-day travel demand model and revenue projections are completed. The Authority wants to keep tolls as low as possible, and it has targeted a frequent user fee rate in the $1 range as a tolling policy objective.

Authority Chair Charles Buddeke stressed that this update is not the final financial plan for the project, noting that the group will continue to explore ways to build the best plan possible that can meet its objectives, including the August 2012 target date for construction.

“This updated plan not only brings current the financial picture for this vital project, but more importantly it serves as the foundation for where we go from here”, added Co. Chair Kerry Stemler.

The Louisville Southern Indiana Ohio River Bridges Project is one of the nations largest transportation projects and calls for reconfiguring Louisville’s Kennedy Interchange (Spaghetti Junction) and building two new bridges, one downtown and the other eight miles upstream in the metro area’s east end.

When completed, the project is expected to reduce accidents by as much as 50%, cut travel time by more than half through the Kennedy Interchange during rush hour, and create an average of more than 2,000 jobs per year during construction and nearly 1,000 jobs per year after completion. (Statistics are based on federally accepted criteria for job creation.)

Source: Louisville and Southern Indiana Bridges Authority

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phot courtesy of the Ohio River Bridges website

We recently spoke with the project manager on the Ohio River Bridges Project, who provided us with the following information on property acquisitions:

They are actively buying property and making offers on the East end of the project. They are about 50% complete with acquisitions on the East end in both Kentucky and Indiana and  offers should be complete by the beginning of 2011 in Kentucky. Aquisitions in Indiana are taking a bit longer, but they do expect all ROW work on the East end to be complete by 2012.

Right now they are actively seeking appraisals or property in downtown Kentucky, which is proving to be more difficult. At this time they have bought 5 parcels and they are trying to get appraisals done on 36 more – they are hoping to make offers by spring of 2011.

The downtown Indiana portion of the project is still being studied as a plant that was previously figured into the plans has since been shutdown;  this will dramatically change what they had planned on doing, but at this time it hasn’t been determined what they will do.

Because this project serves a public purpose and use, eminent domain can be used if negotiations with property owners can not be reached.

If you are interested in viewing detailed plans for the project, scroll to the bottom of our previous project blog:  Ohio River Bridges Project Maps.

For more information on the project, please visit the project website.

In Sept. 2003, the Federal Highway Administration (FHWA) issued a Record of Decision (ROD) officially approving the construction of two new Ohio River bridges linking Louisville and Southern Indiana, and reconstructing the Kennedy Interchange (Spaghetti Junction) where I-65, I-71 and I-64 converge near downtown Louisville.

Photo Courtesy of the Ohio River Bridges Project Team

The most recent financial plan has the project estimated at $4.1 billion, which takes into account inflation. Based on this estimate, Kentucky’s cost is $2.92 billion (?70%), while Indiana’s is $1.15 billion (?30%). The recently appointed Louisville and Southern Indiana Bridges Authority is working to update the financial plan.

The footprint of the Ohio River Bridges Project crosses nearly 300 privately or commercially owned pieces of land. In some cases only part of a property will be acquired, in others the entire property will be taken. Not all land will be purchased before construction begins because construction occurs in phases. Property acquisition may also be limited by the states’ budgets.

Right-of-way plans are subject to change. Current plans call for the following:

• Kennedy Interchange (Spaghetti Junction)
  This section contains approximately 105 parcels: 1 residential and 30 business relocations
• Downtown Indiana Approach
  The exact number of land parcels in this section will be determined as plan development proceeds
• East End Kentucky Approach
  This section includes approximately 95 residential properties, 38 of which will require relocation. The other 57 require partial land acquisition.
• East End Indiana Approach
  15-20 residential and 2 business relocations are included in the preliminary estimates

There is an upcoming public information meeting; the details are as follows:

Date:  December 13, 2010
Time:  4-7 p.m.
Location: Muhammad Ali Center
View Pointe Hall, 6th floor
One Muhammad Ali Plaza
144 N. Sixth Street
Louisville, KY 40202

The project is still in the planning phases and largely unfunded.  The Bridges Authority Finance Committee recently suggested a $1 toll on new and existing bridges in Louisville to help pay for the $4 billion Ohio River Bridges Project.  Committee Chairman Kerry Stemler said on Thursday, “I would like to identify a targeted, frequent toll rate for our community.  So the frequent users know what the targeted rate for the toll of the Ohio River Bridges Project would be.”

We have obtained detailed plans for the project and you can download them here to view property impacts.  These are extremely large files; expect very long download times:

Map 1, Map 2, Map 3, Map 4, Map 5

The states of Indiana and Kentucky have the authority to use eminent domain to acquire property for this project.  If your property lies within the project footprint, you will be approached by either the States of Indiana or Kentucky about the purchase of your property or portions of your property.  Make sure you know about your rights in the eminent domain process.  Learn more about Indiana Eminent Domain Law and Kentucky Eminent Domain Law.

On May 19th, 2010 Governor Mitch Daniels announced that construction of I-69 is ahead of schedule and on-budget. Estimates that I-69 could be built from Evansville to Crane for approximately $700 million are on target because bids are coming in lower than expected and INDOT is using innovative techniques to both design and build the road.

Associated Press. Gov. Mitch Daniels announces that work on Interstate 69 is on-budget and ahead of schedule during a news conference along a completed stretch of the highway, near Indiana 68 north of Evansville, on Wednesday.

As stated in the press release, the governor also announced:

• The Federal Highway Administration (FHWA) has issued final approval of environmental studies for I-69 Section 2, from Oakland City to Washington, and Section 3, from Washington to Crane. INDOT has secured all of the approvals needed to move ahead with highway design and land acquisition activities, and begin construction.

• INDOT has awarded contracts for six miles of I-69 in Daviess County. The bid was 30 percent under estimates. Other contract bids have had similar results, and all have been awarded to Indiana companies.

• Within the next 45 days, the Indiana Department of Transportation expects to publish the Draft Environmental Impact Statement for I-69 between Crane and Bloomington. Construction could start as early as summer 2011, with all 27 miles underway by the end of 2012.

• Over the next seven months the Indiana Department of Transportation (INDOT) plans to bid nine contracts, forming a combined construction zone that will measure roughly 400 feet wide by 65 miles long, and stretch across Gibson, Pike, Daviess and Greene counties. Four of the contracts will combine highway design and construction to condense the overall delivery time-line.

The construction of I-69 is requiring the acquisition of a substantial amount of private property. With all the media and excitement surrounding this project, we quickly forget about those property owners who are losing sizeable portions of their business, farm land, and their homes. Are these people being treated fairly during the process?

Our firm is working closely with Sever Storey to represent a significant number of property owners who are receiving much less than what they are entitled to receive by law. Remember, although the government has the right to take property for this project, the law requires them to pay full market value for the property. If you’re a property owner affected by this project, INDOT will make you an offer, and it will likely show you an appraisal and tell you it represents fair market value. But, as a property owner, how do you know that this is an accurate assessment of the property taken and damages done to any remaining land?

Through careful analysis of INDOT’s appraisals and offers, we’re seeing that some property owners are not being fully compensated for their mineral rights. Additionally, we’re seeing that the new I-69 will bisect farm land thus impacting a property owner’s access to their own land, or resulting in portions of landlocked property. These issues are not being accurately assessed in some appraisals. We’re also finding that some property owners will have drainage issues that were overlooked in INDOT’s appraisal, as well as incorrect comparables used when determining the value of property taken.

Many property owners have told us that INDOT offered them a 10% bonus if they accept their offer and elect not to pursue additional damages. While this bonus might seem like a nice incentive initially, you might want to call an eminent domain attorney for a free case analysis to determine what your true damages are. You might be entitled to more than just an additional 10%. Read more about eminent domain and Indiana eminent domain law.

Below is a rough summary of the property acquisition timetable. Keep in mind this is an estimate based upon conversations with affected property owners and interactions with officials at INDOT; this info might not be true in all cases:

1.Property acquisition is complete in the Haubstadt, Fort Branch, Montgomery, Elnora, and Plainville.

2. Most property owners in Oakland City have had appraisals and some have received offers. Some owners mentioned that appraisals were conducted before the first of the year and have yet to year from INDOT.

3. Property owners in Washington for the most part have appraisals, some have settled and some are waiting for an offer.

4. For the most part, property owners in Petersburg have yet to hear anything from INDOT.

5. Property owners affected by Tier 2 sections 4, 5, and 6 likely have heard nothing. The environmental impact study for section 4 is close to being approved. Once that is done, an alternative can be chosen. The EIS for section 5 has not been approved yet and no date is set. Minimal work is being done on these three sections. They are temporarily on hold while INDOT concentrates on sections 1-3.

If you are affected by the project and would like a free consultation, or if you have questions regarding the project and your rights, feel free to give us a call at 866.339.7242.

For more information on the project, and to view the design layouts of the project, visit INDOT’s I-69 project website.

In 2009, Indiana Governor Mitch Daniels pledged to complete the first three sections of the lengthy I-69 project from Evansville to Indianapolis by the year 2012, meaning this portion will be completed three years ahead of schedule and on a tighter budget.

The governor states that the major challenges in completing this section of the project is getting all real estate right of way purchased, completing the environmental documents and permits, and compiling and signing the construction contracts.

On the newly revved schedule, costs for this portion (the first three sections) are estimated at nearly $700 million for construction, which is less than previous estimates. The governor stated that the new aggressive schedule will cut back on costs, specifically in the amount that’s needed to acquire real estate for right of way and the costs of environmental impacts. In addition, the governor foresees a positive economic impact with the new schedule, with the project creating an estimated 5,000 new jobs.
Appraisals have begun in Daviess County, and Pike and Gibson County have crews out surveying the land in order to begin the appraisal process in those areas.

If you have further questions about this project, call us toll-free at 866.339.7242.

The Indiana Department of Transportation (INDOT) is currently designing and constructing a new roadway connecting Evansville to Indianapolis.

The idea of improving I-69 has been in place since the 1940’s, and in the early 1990’s Congress began to pay attention and give consideration to the large project.

Nearly ten years ago, the Tier 1 Environmenal Impact Study (EIS) began, and nine project goals for the project were developed, all of which fall under the following three categories:

In December of 2003, a Final Environmental Impact Statement (FEIS) for the project was issued, which lead the way for Tier 2 environmental studies, which consists of the current I-69 from Evansville to Indianapolis route. 

Because of the size of the project, INDOT has divided the approved corridor into six sections, with each section stretching anywhere between 13 and 29 miles in length. The corridor itself is 2,000 feet wide, and each of six Tier 2 section study teams will determine the final alignment the approximately 350-foot wide highway within the approved corridor.

Officials for INDOT said that the Evansville to Crane portion of the project should be completed by 2013, and the DOT has nearly $700 million put aside for the project. The DOT plans to use several cost-cutting measures in order to stretch the funding as far as possible.

Right of way acquisition has begun in the southern section (Evansville), and is moving north toward Indianapolis, with construction already underway in Evansville. Below is a map regarding the project, courtesy of the Tier 2 project website. Eminent domain will be used to acquire property if negotiations can not be reached.

Click her for the Tier project websites:  Tier 1, Tier 2.

If you are affected by this project, do not hesitate to call us at 866.339.7242. Also, we have designated a portion of our website toward educating property owners on the eminent domain process and laws in Indiana. Please read more about the Indiana eminent domain law.

Biersdorf & Associates Project # 4801.002

Condemning Authority: Indiana Department of Transportation 

We recently spoke with a project manager from the In/DOT, who informed us that funding for right of way acquisitions has been secured, and the initial properoty appraisal process has begun. At this time, some of the property appraisals have been completed and a few offers for property acquisitions have been made. However, due to the size of the project, property appraisals and acquisitions will be ongoing over the next six years. 

If everything goes according to schedule, construction will begin in 2011 and be completed by 2018. Click here to visit the project website.

If you have any other questions regarding this project, please call us toll-free at 866.339.7242. 

March 26, 2009

The InDOT is currently working on design plans for the US 31 from I-465 to SR 38 project that will turn US 31 into a limited access freeway from Indianapolis to South Bend.

The area expected to be most affected by the project is the town of Westfield.

Since no parks or schools can be purchased for right-of-way and both of them are located East of the highway, businesses and homes on the West side of the highway are expected to be acquired for the project.

According to Westfield Chamber of Commerce Executive Director Julie Sole, areas along 161st street and SR 32 are being developed to make it an attractive destination for businesses that will need to relocate.

For more information on this project, please call us at 866-339-7242.

The InDOT has unveiled plans for a new project that will make the commute of 150,000 easier.

The I-69 and I-465 Interchange Project will widen both interstates to 12 lanes, including express lanes meant to alleviate congestion issues. It will cost an estimated $567 million and last six years.

The funding for the project will come from the Major Moves spending program, which uses proceeds from the lease of the Indiana Toll Road but the half a billion dollar price tag does not include the amount that will be needed for right of way purchases.

It is expected that 25 property owners along I-69 will have to give up part of or their entire property to the state through the use of eminent domain.

The project is scheduled to begin construction in 2012.

Plans for I-69 and I-465 Interchange Project (Image courtesy of IndyStar.com)

To view a video illustrating how the project will be carried out, click here.

Biersdorf & Associates Project # – 4801.001

Condemning Authority – State of Indiana

Project Description: The following information was provided by the Indiana Department of Transportation- Kokomo Corridor Project. http://www.in.gov/indot/div/projects/us31/kokomo/project.htm The state of Indiana is planning on implementing improvements to the US-31 corridor in Howard County. The new corridor, also known as, Kokomo Corridor, will go through the city of Kokomo and Center Township along with portions of Clay, Howard, Taylor and Harrison townships. The plan is to upgrade the existing US-31 into an urban freeway along with a series of interchanges at major cross streets within the corridor.  Property Acquisition for Phase I, which consist of areas from US-31 from South of Lakeville to US-20, is already taking place.  

You do not have to accept the offer made to you if you feel that it does not represent your properties highest and best use value.  If you have received an appraisal or offer and would like us to review it at no cost or obligation, or if you would like additional information on the project and your rights, please contact us at 866.339.7242. 

Biersdorf & Associates Project # – 4801.002

Condemning Authority – State of Indiana

Project Description: The following information was provided by the New US-31 Hamilton County website.

http://us31hamiltoncounty.in.gov/

As part of the Major Moves Project initiated by Governor Mitch Daniel, the state of Indiana is planning to upgrade US-31 from Indiana to South Bend. The upgrade will turn US-31 into freeway standards from I-465 at the Marion-Hamilton county line north to 216^th Street. Construction is to begin in 2011.

About the Project

The project will upgrade US 31 to freeway standards from I-465, at the Marion-Hamilton county line north to 216th St. Once complete, there will be new interchanges between I-465 and 216th St. in Westfield. The purpose of this project is to reduce congestion, improve safety and provide for the reliable and efficient movement of commerce and regional travel. This project is part of Governor Mitch Daniels’ larger Major Moves project to upgrade US 31 from Indianapolis to South Bend.The Indiana Department of Transportation (INDOT) is seeking input on all aspects of The New US 31 Hamilton County Major Moves project, including the environmental study and the design alternatives. INDOT and the Federal Highway Administration (FHWA) approved the Supplemental Draft Environmental Impact Statement (SDEIS) on May 21, 2008. The SDEIS documents the potential effects of the proposed project on the US 31 Hamilton County corridor. The SDEIS contains recommended interchange options, but these interchanges will not be finalized until a Record of Decision is made in late fall 2008. Construction is expected to begin in 2011.

http://us31hamiltoncounty.in.gov/index.html

You do not have to accept the offer made to you if you feel that it does not represent your properties highest and best use value.  If you have received an appraisal or offer and would like us to review it at no cost or obligation, or if you would like additional information on the project and your rights, please contact us at 866.339.7242.