By PAULENE POPARAD

A committee of regional officials expressed united support Thursday for restoring full funding to the new Northwest Indiana Regional Development Authority.

However, the majority declined to reverse their last month’s vote recommending tabling plans to lease the Indiana Toll Road for 75 years in return for $3.85 billion now.

Differing House and Senate versions of H.B. 1008 that would authorize a lease to a Spanish/Australian consortium to fund Gov. Mitch Daniels’ Major Moves 10-year road and bridge program are going down to the wire in Indianapolis.

Some believe a special session of the General Assembly may be called if a joint Senate/House conference committee can’t resolve the differences.

Members of the Northwestern Indiana Regional Planning Commission said yesterday in Portage that the legislative situation is so fluid it’s hard to know what is being proposed and what the long-range implications of the lease would be, let alone being asked to take an informed position on it.

“At this point, what are we voting on?” asked Hammond Mayor Thomas McDermott Jr.

There was agreement that at a minimum NIRPC wants the original $100 million in state funding previously pledged to the Lake and Porter counties RDA restored rather than the $20 million earmarked as of Thursday morning.

RDA executive director Tim Sanders said the difference would mean “whether we do big and bold things in northwest Indiana or we’re not.” One of the RDA’s major initiatives is the West Lake extension of South Shore commuter service to Valparaiso and Lowell, but that requires a $173 million local match to leverage federal funding.

“We think having a fixed funding source is critical,” Sanders stated, because it would allow the authority to raise additional money on that assurance.

Lake County Surveyor George Van Til said the RDA cut-back was especially disappointing and disheartening because “the RDA relentlessly was promoted for months as the greatest thing since the steel mills in northwest Indiana. We were excited about this.”

RDA board member Gus Olympidis said there are serious problems with the pending legislation and the fact no money is specifically earmarked for West Lake, especially when the state is offering millions to lure two major sporting-goods retailers to Indiana and the rail extension would bring major economic benefits, too.

Valparaiso Mayor Jon Costas emphasized the $3.8 billion lease offer is on the table now and might not be next year.

He urged NIRPC to change its position taken Jan. 26 on H. B. 1008. That vote asked legislators not to take final action on the bill and instead to empanel a study commission before bringing the controversial proposal back before the Legislature next year.

Costas said the January motion, on which he was the lone no vote, was as good as saying NIRPC wanted H.B. 1008 voted down, but since then more information has come to light. Costas asked that NIRPC take a new vote stating it wants the $100 million for the RDA but has no position on the Toll Road legislation.

A quorum of the 51-member NIRPC Full Commission wasn’t present at the special meeting called at Costas’ request, but a quorum of the eight-person NIRPC Executive Board was. NIRPC attorney David Hollenbeck said the board is authorized by statute to function for the commission between its quarterly meetings.

Executive Board member David Cincoski, a Chesterton Town Council member, moved to reaffirm NIRPC’s previous resolution to table and study H.B. 1008. Chesterton council members have expressed reservations about the legislation and the lease.

All five Executive Board members present had to agree for the motion to pass. Cincoski, Porter County Surveyor and NIRPC Chairman Kevin Breitzke, and city of LaPorte Mayor Leigh Morris all voted yes. Costas and Crown Point Mayor Dan Klein voted no.

Morris’ subsequent motion to have the Executive Board express strong support to re-establish full RDA funding passed unanimously.

How much clout the vote will carry downstate remains to be seen. “I think (NIRPC) has a pretty strong voice down there, more significant than any one of us speaking individually,” said Costas. Commented Cincoski, “How much influence will it have, I have no idea, but it should because this is the area being directly affected.”

Lake, Porter and LaPorte are among seven counties through which the Toll Road runs. A sore point Thursday was that those seven counties would share only 34 percent or $1.2 billion of the lease proceeds for projects there. “I strongly feel distribution of the money isn’t equitable,” said Breitzke.

Ninety minutes of discussion preceded the NIRPC votes including a question-and-answer session with Indiana Department of Transportation representatives Director of Planning John Weaver and deputy Commissioner of Tolling Operations Joseph Gustin.

Gustin said their statistics show of the 34 percent of Toll Road revenue coming from Indiana users, only 18 percent come from Toll Road counties. “You’re getting twice as much so you’re getting a pretty good deal, I think.” NIRPC executive director John Swanson and others questioned the usage statistics.

Gustin also said the concessionaire is required to make $4 billion in Toll Road improvements. If they default on the lease terms the state takes back the road and has its $3.8 billion. “Where’s the downside in that?”

Breitzke said many of INDOT’s representations sounded good and logical, however, “We want to make sure it’s something that actually occurs. It troubles me when we hear ‘We can, not we will or we are.’” He also expressed concern over the way the lease was negotiated and would be retroactively approved.

A major lease stumbling block for some NIRPC members is its 75-year term. “Fifty, 75 years, we don’t know what will be needed,” said Hobart Mayor Linda Buzinec. According to Weaver, “Where the traffic is, we’ll do the projects. That’s where the money will go.”

Morris said a non-compete clause restricting certain road construction near the Toll Road would guarantee operator profits at the expense of economic development along it. Gustin said road upgrades would be allowed; even new interstate highways could be built without violating the contract but in some cases the concessionaire would have to be reimbursed for lost toll revenue. Some asked how the state would pay for that.

Portage Mayor Doug Olson inquired if there is any provision to help out local municipalities whose own roads see wear and tear by motorists traveling to and from the Toll Road. Gustin said a former grant program has ended but future grants might be awarded.

Breitzke said it’s unfortunate that as northwest Indiana’s regional transportation planning agency NIRPC wasn’t consulted about the lease before it was presented for passage.

Thursday morning NIRPC received an email from Indiana Lt. Gov. Becky Skillman endorsing the Major Moves program that would be funded by the Toll Road lease, and asking for support. She said Major Moves has the potential to create more than 130,000 jobs as well as to give local communities $150 million over the next three years to fix roads and bridges.

Posted 3/3/2006