Kentucky Seeks to Intervene in Federal Bridge Lawsuit

BRADENTON, Fla. — The Kentucky Transportation Cabinet on Monday filed a motion in federal court to intervene in a lawsuit that the agency believes could delay the long-planned Ohio River Bridges Project.

The suit against the Federal Highway Administration was filed in U.S. District Court in the Western District of Kentucky in 2009 by the National Trust for Historic Preservation and River Fields Inc., a river conservancy along the 981-mile Ohio River.

The bi-state plan to build two new bridges across the Ohio River and reconstruct a major intersection in Louisville “will affect an area that is extraordinarily rich in historic properties and historic districts” in Kentucky and southern Indiana, according to the complaint filed by the organizations.

When the FHA approved the project in 2003, it failed to consider certain elements required by the National Environmental Policy Act, the suit said.

The plaintiffs are seeking a declaratory judgment striking down the FHA’s 2003 decision.

If a financial plan for the project is developed before the suit is concluded, the groups said they would seek injunctive relief to prohibit any further expenditure on the project.

Federal Judge Dave Whalin stayed most proceedings in the case in March pending the FHA’s ruling on a supplemental final environmental-impact statement filed by the states that is aimed at downsizing the project cost to $2.9 billion from an estimated $4.1 billion.

Whalin ordered the plaintiffs and the FHA to continue discussing a settlement through mediation.

“Our financial advisers have made it clear that pending litigation will likely drive up the financing costs of the bridges project,” said Kentucky Transportation Secretary Mike Hancock.

Eliminating the lawsuit would “help ensure the lowest possible costs for our citizens and lowest possible tolls for users,” he added.

The Kentucky Transportation Cabinet and Indiana Department of Transportation have participated in legal proceedings related to the case but have not been formal parties.

Indiana reportedly plans to file a motion to intervene in the case as well, though no filing was found in court records as of Tuesday.

The bi-state Louisville and Southern Indiana Bridges Authority is currently determining if the project will be funded through traditional bond financing or by using a public-private partnership.

Last week, the authority voted to target the fourth quarter of this year to begin the process of selecting a lead contractor for the project.

The ultimate schedule depends on completion of the supplemental environmental-impact statement.

The authority plans to issue a request for information in September for firms or consortiums interested in discussing various proposals to finance and build the project.

After that, a request for qualifications would be issued, with responses due in January. Then a short-listed group of the top firms will be asked to submit proposals with schedule and pricing information.

Both states want to have the project under construction by August 2012.

The “authority’s timetable is designed to ensure that the financing and construction approach is in place when the final federal approvals are received, enabling the project to move forward as quickly as possible,” said Steve Schultz, executive director of the bridge agency.

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