Tom Warne Report, 9 September 2013
JEFFERSONVILLE, Ind. – A decision in setting toll rates was unexpectedly delayed Thursday for three Ohio River bridges, which put off a key component in completing Kentucky’s share of financing the $2.6 billion project with Indiana. Indiana members of the two-state tolling board requested to postpone setting tolls for the project which includes building two spans and renovating a third span connecting the two states.
Kentucky Transportation Secretary Mike Hancock said he was surprised by the delay request, as Thursday’s meeting agenda included a resolution to set initial toll rates in order to help finance one of the largest public works projects in the nation. Kentucky board members agreed to delay action, and Indiana members assured them that the tolling issue remained a top priority. Indiana has already secured financing for its portion of the project, which includes a new span east of Louisville that will link Utica, IN with Prospect, KY.
Kentucky is depending on toll bonds and a low interest federal transportation loan to raise hundreds of millions of dollars to cover its share of the project, most notably with a new I-65 bridge between downtown Louisville and Jeffersonville. Although Kentucky’s financing should be secured by this fall, Hancock said the delay could raise costs for the state.
“Our concern is interest rates are continuing to rise,” he told reporters afterward. “As interest rates go up and we have a … multi-decade-long financing deal, it’s incumbent on us to get the very best rates and keep those costs down so the toll rates that have to be charged are as low as they possibly can be.”