Indiana’s state government has officially taken over the Interstate 69 Section 5 project from I-69 Development Partners.
The Indiana Finance Authority announced it had reached an agreement with the private developer in June to take over construction, operation and maintenance of the project after several delays in the completion schedule.
However, to officially take control of the project, the Indiana State Budget Committee had to approve the plans, while all parties had to endorse a settlement agreement and bondholders had to be paid in full.
The finance authority announced Monday it had completed the settlement transaction to terminate the contract with I-69 Development Partners and reimburse bondholders for $246 million.
“The state is officially in charge of this important project,” Gov. Eric Holcomb said in a press release. “Our focus is to complete this crucial stretch of roadway that provides a promising path to economic growth for Hoosiers and businesses in southern Indiana.”
The project is under Indiana Department of Transportation (INDOT) control, with an expected completion by August, 2108.
INDOT has been working with Walsh Construction over the past month to assess the project and identify milestones to keep it on track. Most of the primary subcontractors who worked on the project under the previous arrangement were retained, according to the release.