By PAULENE POPARAD

Only Valparaiso Mayor Jon Costas voted against a motion adopted by the Northwestern Indiana Regional Planning Commission on Thursday urging the Indiana General Assembly not to take final action on a pending bill that would lease the Indiana Toll Road to a foreign company for 75 years in return for $3.8 billion now.

Instead, NIRPC recommended that a study commission be empaneled to study H.B. 1008 this summer before it’s brought back again in the next legislative session.

The motion also approved creation of a NIRPC subcommittee to study Gov. Mitch Daniels’ plan to privatize the toll road to fund his 10-year Major Moves highway initiative that would distribute $150 million over the next three years to local communities for their road and bridge needs.

Under the plan $1.35 billion or 34 percent of the lease proceeds would go to Toll Road counties including Porter. According to the governor’s office, included in that total is $875.5 million for state projects in those counties; $100 million for the new Northwest Indiana Regional Development Authority over 10 years; and $100 million for local transportation projects.

NIRPC members representing Lake, Porter and LaPorte counties and their 48 communities raised several questions about who really would be getting the best deal if the toll road were leased: Hoosier motorists, taxpayers and units of government or Statewide Mobility Partners, the Spanish-Australian consortium that submitted the $3.8 billion bid?

It’s the same Macquarie/Cintra ownership that was given a $1.83 billion lease in 2004 for the 7.8-mile Chicago Skyway in addition to operating more than 30 toll roads on five continents.

NIRPC officials said it’s hard to get a handle on the specifics of Daniels’ proposal, which is being hotly debated in Indianapolis with numerous amendments filed and alternate options proposed.

“There’s a lot yet to be understood and we’re trying to stay on top of it,” said NIRPC executive director John Swanson.

NIRPC commission members expressed concerns about several provisions in the privatization plan’s current language, like limiting construction of future interstate-standard highways longer than 20 miles within 10 miles of the toll road during the term of the lease. LaPorte Mayor Leigh Morris said, “That’s absurd for us to restrict ourselves.”

The state, in anticipation of the lease, already had proposed to boost toll-road fees this year with average car tolls rising by 72 percent and average truck tolls by 113 percent in phases, said NIRPC transportation planner Ken Dallmeyer.

Lake County Surveyor George Van Til said municipalities don’t know what the future holds. “There could be some incredible needs down the road and we’re saying we want this money now.” Higher tolls could force motorists off the toll road onto local routes as detours, but would local governments be reimbursed? he asked.

Merrillville Town Council member Shawn Pettit asked who would have jurisdiction over the toll road’s right-of-way and whether Macquarie/Cintra could grant lucrative easements for pipelines and fiber optic lines.

Newly elected NIRPC Chairman Kevin Breitzke, Porter County Surveyor, said we didn’t know what other purposes or uses would be allowed, like signs and utility easements. “There are so many unknowns that haven’t been considered.”

Highland Clerk-treasurer Michael Griffin said, “I want to keep an open mind but the figures are fluid.” He questioned what is the useful life of the 50-year-old toll road, and at what point the lease becomes profitable for Macquarie/Cintra.

LaPorte County Council representative Jerry Cooley said with U.S. veterans fighting around the globe it doesn’t make sense to give away the toll road to foreign consortiums. “It’s absolutely unAmerican. They could put a barricade on our road and say we can’t use it. It’s wrong, wrong, wrong.” He added that any Hoosier legislator who votes for the lease should be kicked out of office.

Mary McShane representing the Dyer Town Council said privatization makes it sound like Indiana’s too stupid to run its own toll road.

Van Til proposed a Daniels’ representative be asked to attend an emergency meeting of NIRPC’s Full Commission. “This is an important body and they should respond to us accordingly.” Swanson said he had requested a representative attend yesterday’s meeting but would make the request again.

Costas said Daniels’ proposal is a very significant initiative that possibly could fund a lot of projects that otherwise won’t get funded. He also noted that in today’s global economy foreign companies have tremendous investment in our country as we do around the world. He urged fair and full consideration of the lease.

Lake County Council member Will Smith Jr. said, “We need to look at what we got yesterday, and what we could get tomorrow,” adding that there are elements of the proposal that need to be worked out.

Morris said, despite the fact there are so many potential impacts and questions to be weighed, “This train is moving, and it’s moving fast.”

Daniels is lobbying hard for passage of the bill so the lease can be finalized, an opportunity Costas said could be lost. Others said if there is money to be made, leasing the toll road always will attract bidders.

Hometown options endorsed

On another legislative matter, the commission majority voted by voice vote (no roll call votes are taken) to support H.B. 1399 known as Hometown Matters. According to the Indiana Association of Cities and Towns, among other provisions the bill would help reduce local government’s reliance on property taxes by giving it the option to establish revenue generators like income taxes, sales taxes, innkeeper’s taxes, and food and beverage taxes if the county doesn’t.

Efficiencies in local government also are encouraged by authorizing the sharing of municipal employees like fire chief, town marshal and city engineer with proper documentation of hours worked for each jurisdiction. Rainy day funds and cumulative capital improvement funds would be given more flexibility, and the Department of Local Government Finance’s review of local budgets would be limited under certain conditions.

Morris gave an impassioned speech for H.B. 1399, yet others were less enthusiastic. Porter County Councilman Bob Poparad said some of the taxes can be implemented now. “The mechanism’s already there.” But Munster Clerk-treasurer David Shafer said, as an example, Munster may want to levy a sales tax on gasoline, but Whiting has refineries yet no gas stations and might prefer a cigarette tax instead.

Cincoski elected

In 2006 reorganization, in addition to Breitzke, Morris was elected vice-chairman; Crown Point Mayor Dan Klein secretary; and Costas treasurer. They are joined on NIRPC’s Executive Board by Cooley; Pettit; State Rep. Chet Dobis, District 13-Merrillville; and Chesterton Town Council member David Cincoski. Dobis and Cincoski were absent.

Also Thursday, $13.28 million in transportation-enhancement applications for hike/bike trails, historic site improvements and downtown streetscape projects were adopted and forwarded to a state committee for possible funding. In 1999 NIRPC-sponsored projects got $6 million but about $2.5 million is more realistic this year. The only Porter County applications were in Valparaiso for a pathway and a streetscape.

Seven hazard-elimination projects on U.S. 30 in Merrillville totaling $2.8 million were added to NIRPC’s transportation improvement plan; construction is hoped next year. Safety improvements would be made near K-Mart and the Lake County Library where several serious accidents have occurred.

Posted 1/27/2006