Kentucky-Indiana Bridge Ballyhoo

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BRADENTON, Fla. - Kentucky Gov. Steve Beshear, accompanied by Indiana Gov. Mitch Daniels, Tuesday made one of several stops in the Bluegrass State to ceremonially signing new legislation clearing the way for the two states to finance the $4.1 billion Louisville-Southern Indiana Ohio River Bridges Project.

The bi-state authority will determine how to pay for building two new bridges across the Ohio River as well as the reconfiguration of a major downtown Louisville interchange known as "spaghetti junction" where Interstates 64, 65 and 71 converge.

"Gov. Daniels and I recognize the importance of modern river crossings to both of our states. Kentucky and Indiana are quite literally at the hub of America's interstate commerce," Beshear said at the initial bill signing last month. "We also recognize that these are massive projects, too costly to be undertaken entirely by one state with only our traditional sources of transportation revenue."

Last week, the Louisville Metro Council passed a resolution asking the governor to move forward with appointing members of a working group that will negotiate with Indiana officials to devise the framework under which a bi-state authority will work.

It was a milestone a long time in the making, according to Kay Stewart, executive director of the Bridges Coalition, a bi-state advocacy group that supports the project.

"It's encouraging that the process is going forward," said Stewart, who pointed out that it has been 50 years since a bridge in the area has been built, yet the Louisville area has grown along with congestion. "We think the need is great."

The Louisville-southern Indiana region tied for second place as the most congested mid-sized urban area in the Texas Transportation Institute's 2009 Urban Mobility Report.

According to the U.S. Department of Transportation, the Ohio River Bridges Project will improve congestion, safety and mobility at "a major mid-America crossroads" where three interstates converge and serve as a major north-south freight corridor between Mobile, Ala., and Chicago.

The federally designated "mega-project" has been a joint effort of the two states for years. It was designated a priority national transportation project during President George W. Bush's administration.

In 2003, the Federal Highway Administration released what is known as a "record of decision" approving sites for the project as well as an environmental impact statement.

In the years since the FHA decision, the project has received federal grants and state funding. And a bi-state management team composed of the Kentucky Transportation Cabinet and the Indiana Department of Transportation has overseen work completed by the general engineering consultant, Community Transportation Solutions, and six design teams. The states have put up a comprehensive site about the project on the Web at www.kyinbridges.com.

But while studies, public hearings, and early design work have taken place on the massive project, it also stalled as Kentucky pondered how to finance its $2.92 billion share of the construction cost.

Indiana, whose share is $1.15 billion, has offset a portion of its cost already by setting aside $600 million from the leasing of the northern Indiana toll road. Indiana's legislature also has agreed to create an Ohio River Bridges Commission to work with Kentucky on the financing plan.

In June, Beshear proposed a bill that would allow Kentucky to participate in a bi-state financing authority. And in a special session, the Kentucky legislature passed HB 3.

HB 3 allows Kentucky to participate in a bi-state transportation financing authority with the power to issue bonds backed by tolls and federal grant anticipation revenue. It also allows other financing authorities to be created in the state to finance other large transportation projects.

The next step will be for the governors to appoint a working group that will devise the structure under which the bi-state authority will operate. That plan will be presented to each state's legislature for approval next spring.

Beshear said he expects appointments will be made by this fall.

"If the legislature didn't provide for some new revenue options [such as tolling], this project would not be built," said Stewart of the Bridges Coalition. "The fact that the legislature did is a significant step."

Stewart's organization also has a Web site about the project at www.thebridgescoalition.com.

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