The state of Indiana has agreed to let the Indiana Toll Road’s private operator increase tolls on all vehicles twice a year, in exchange for payments totaling $700 million, according to agency documents.
The Indiana Finance Authority on April 14 approved a resolution authorizing changes to the 75-year lease with ITR Concession Co.
The toll rate for a full-length 157-mile trip is currently $16.21 for a Class 2 passenger vehicle, and $87.49 for a Class 5 truck.
The amendment allows the operator to hike tolls twice a year, beginning this year and rising every Dec. 31 and June 30 thereafter.
Tolls will increase by at least 1.5% each time, or — if it’s greater — by inflation. The tolls currently jump at least 2% once a year.
It is unknown how much new revenue the operator will receive from the change.
The operator will pay IFA $300 million within 30 days of the amendment taking effect. Within one year of the first payment, the agency will get paid $200 million — and within two years, an additional $200 million.
The money goes into a special fund to be used for transportation and infrastructure projects in seven counties, including the prospective host of a new Chicago Bears stadium: Lake.
House Speaker Todd Huston, who authored the Senate Enrolled Act 27 stadium plan, previously said the state would amend or renegotiate the Indiana Toll Road lease to invest in infrastructure around the stadium.
The Bears are still engaging with Illinois officials on a counteroffer, but Huston said Hoosier leaders remain “optimistic.”
The increases would occur regardless of the franchise’s decision. The money could also be spent in Porter, Elkhart, LaGrange, La Porte, Steuben or St. Joseph counties, according to the board’s resolution.
The amendment also requires the operator to make at least $25 million in capital improvements to the Indiana Toll Road within five years.
Risk-sharing provisions are also included in the document.
When revenue exceeds projected thresholds, IFA “will share in” up to 50% of the overage, but will also “share in the underperformance” below those projections.
The State Budget Committee will review the amendment at its April 16 meeting, according to the lawmaker-dominated group’s agenda.
The lease was first authorized in 2006 and ends in 2081.
It was last amended in 2018. Former Gov. Eric Holcomb surprised lawmakers when he unveiled a negotiated deal for a 35% toll hike on commercial vehicles in exchange for a $1 billion payment to the state — prompting the General Assembly to seek greater oversight.
This article originally was published by Indiana Capital Chronicle, which is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence.
