Comedy Corridor I-69 bypass of Indianapolis -- This is a joke!

All projects the size of I-69 must complete an Environmental Impact Study under the rules of the US Federal Highway Administration (FHWA) and the National Environmental Protection Act (NEPA). In the case of I-69, INDOT requested and was granted by Federal Highway Administration policy authority break this single study into two tiers. These tiers are actually two parts of the single legal requirement for an Environmental Impact Study (EIS). In the end the two tiers must stand as a single unified study.

By federal law I-69 in Indiana must be studied as four Sections of Independent Utility (SIU) of NAFTA Corridor 18,

Until Daniels' Comedy Corridor was moved up to study status, only two of those studies had been started. Those sections are defined by location in the text below. (See: "Look at this Comedy Corridor for how it fits into the I-69 study.")

Daniels Announcement:

Thursday (November 9, 2006) Indiana Governor Daniel's seemingly reversed his Toll69 proposal and announced an entirely new Privatized Interstate construction project, the Toll 69, Indianapolis east side bypass. (See: That the press release linked above deceptively suggested that federal approval of the I-69 route has already been granted... not true.

The Tier 1 record of decision for I-69 in SW Indiana was only approval to move forward with the continuation of the study on Indiana's chosen route of 3C. Daniels and Media often suggest that I-69 has been approved federally in Indiana.

No, The Tier 2 must go through a Draft Study (DEIS), Comments, Final Study (FEIS) More Comments, a Final Record of Decision (ROD) and then Design. INDOT is less than 1/2 way through the I-69 Evansville to Indianapolis study process and in court right now over the first Tier #1 that was done incorrectly, because it is hard to prove a falsehood. http://www.i69tour.org/study_suit.html

I-69 failed as a Toll Road proposal but by Daniels' spin; we are to believe that he heard the public and changed course.

Because of Daniels addition of Tolling INDOT tried to amend the I-69 (SIU3) study quick and dirty with a rather insignificant " I-69 TIER 1 TOLL ROAD RE-EVALUATION REPORT".

Today that attempt has officially failed. We resist the dreaded term "waffle" as we forgive Daniels' claim to the Bloomington Herald Times regarding I-69, "Toll Road or No Road."

Daniels may still be on track to lease I-69 in Indiana fully as a Privatized Toll Road.

The I-69, 3-C EIS Study's ReEvaluation failed to prove that it would work as a Toll Road, in fact proved for a third time that I-69 would not provide a positive return on investment. So not only did adding Tolling to the I-69 study fail, it also proved that no consortium privateers would invest in this project so rightly refereed to as a Boondoggle for over a decade and one half. http://www.i69tour.org/toll_failure.html and http://www.i69tour.org/tier2science.html

Now Daniels' Privatized Toll Road Comedy Corridor proposal is even more absurd!

Indianapolis has the most interstate connections of any city in the USA, perhaps the world. Look at the map... Why would anyone pay a toll to use a road that serves only Pendleton, Shelbyville, Franklin and Martinsville, when there are already existing shorter toll free routes in every major direction?

These Public funded Privateer Profit (PPP) toll roads are intended to be the most expensive toll road ever built. That is why the Reason Foundation and Daniels supports private as opposed to public toll roads. Politicians will not raise the tolls as often and as high as will private companies protected by no compete clauses and guarantees of profit. http://www.i69tour.org/reason_wrong.html

Look at this Comedy Corridor for how it fits into the I-69 study.

Each state is required to study I-69 in "sections of independent utility" SIU. In total Corridor 18/ I-69 have over 30 sections that states must study. States will spend their normal state and federal transportation funds if they decide that any section is worthy of building. Each SIU must be studied, but no section need be built, regardless of the decision regarding each of the other sections. That is the reason for studies of "Independent Utility".

SIU 1: goes from Canada to existing I-465. This is the built section of I-69. The intersection of I-465 and I-69 is the most congested intersection in the state of Indiana. Fixing that would likely be the most expensive part of upgrading existing I-69 when the state would get around to study of I-69 Corridor 18 SIU#1.

SIU 2: This is the mandatory study of a connector from the Intersection of I-465 and existing I-69 in N.E. Marion County to the point that I-69 would meet enter SW Marion County. Congress in the Corridor 18 study proposed that this connector might go through Indianapolis rather than around it.

This bypass suggestion announced November 9th has been a long buried and very rough outline in INDOT long range plans in the past decade. It was not part of Daniel's assessment of potential INDOT projects. There is no detailed study started yet. The route may have merit, but it is at this time not studied, not likely to be started in a second Daniels term, and surely toll unfeasible due to lack of traffic. The sparseness of population and the density of existing Interstates are obvious problems with a Toll road private or public here.

SIU 3: is the section most contested in Indiana. It does not go to Evansville as so often thought. It actually goes from SW Marion County most often considered to be I-465 to I-64 about 12 miles North East of Evansville.

The point to all of this, Daniels Comedy Corridor serves as the SIU#2 of the required study of I-69.

It would seem possible that consortiums like that Cintra of Spain and Macquarie of Australia have told Daniels that they are not interested if we can not give them more than I-69 SIU 3 that is proven to not provide enough traffic to produce a profit. I-69 SIU3 / 3-C has been on the world market block since Major Moves granted Daniels authority to Toll I-69 from I-64 north of Evansville to Martinsville.

Daniels 'Comedy Corridor' Privatized Toll Road Bypass fulfills Indiana's obligation to study I-69, Corridor 18, SIU #2, beginning the study of Corridor 18 SIU 2 while addressing issues of SIU 1.

Why the Privatize Tolling proposal failed on Indiana's new terrain I-69.

The Evansville to Indianapolis I-69 expansion was in the fight for it's life under challenge from Citizens and Citizens groups. One part of that challenge was the incorporation of Daniels hastily prepared patch to allow Privatized tolling in the 13 year, 3000 page Tier 1, I-69, 3C study, " I-69 TIER 1 TOLL ROAD RE-EVALUATION REPORT"

This report was included in the suit, proving that I-69 as proposed violates federal law. Tolling would have destroyed the entire study. Daniels third "re-evaluation" for tolling only proved again what two previous studies concluded.

Quoting Page one of the I-69 "Evansville to Indianapolis (SIU3) Final Environmental Impact Study:

> "Some Previous proposals were studied as toll roads. These proposals were not recommended because the road would not be financially feasible as a toll road. "Toll feasibility" requires that traffic levels not only pay ongoing operating and maintenance costs, but that they also provide revenues sufficient for construction debt service. Being "toll feasible" requires higher traffic volumes than those which justify construction of a non-toll facility."

Daniels was forced to give up his privatized tolling authority granted as part of the Major Moves Bill by the Republican controlled legislature, by a single vote, because it was that or loose the I-69 federal court challenge.

Costs for I-69 have risen significantly yet no revision has been produced since 2002:

Increased Oil prices and rapid housing cost increases have vastly increased the construction costs of even a non-tolled new terrain I-69.

Cintra and Macquarie report they will pay more than the lease purchase price in conversion costs to install electronic monitoring and billing on the existing Indiana Toll Road. Their $3.8 billion given to Indiana as a one time up front lease fee was less than 1/2 the costs they have reported to their shareholders in reports where expenses are "bad" and profits are "good". Still the Indiana Toll road from Chicago to the East Cost will produce a 13% per year return on investment according to their analysis.

The number of vehicles traveling between Evansville and Indianapolis proved again that this section is Toll unfeasible. Daniels Comedy Corridor will provide even less Tolling incentives.

Why would anyone invest in tolling a route through Franklin Indiana in perhaps the most densely served toll-free interstate section of the USA?

Indiana is #4 in rural toll road density and Indianapolis has the most interstate connections in the USA.

We must wonder, regarding Privatization and Tolling, what would be the prize for Cintra and Macquarie the two international consortiums that currently have a virtual monopoly on all of the recent USA privatized toll road leases?

It is hard to imagine either of the active toll building and operating international consortiums taking interest in Daniels' Comedy Corridor, unless perhaps it is seen as an I-69 (SIU 2) project providing a bigger future privatization... all of Indiana's I-69 from Michigan to Kentucky and perhaps beyond, if one looks at the national I-69 project.

We put our self out on a limb suggesting what we cannot prove. One must ask, wouldn't such a far-reaching future joining of projects need to be in writing? Cintra has declared their contracts with states can be kept private as they "represent the core of Cintra Zachry's proprietary information".

One way we can make sense of Daniels privatization of his "CC" bypass.

1. Daniels takes the $700 million that he has left over from selling the built Indiana Toll Road and builds for Cintra or other Privateers some of I-69 between Evansville and Bloomington, i.e. I-64 to Crane Naval Base in the Emergency Encroachment Zone established for the 2005 BRAC http://www.i69tour.org/cranepp.html

2. Legislative Democrats who have long sided with Evansville, might even provide the borrowed bonding dollars to "complete" Evansville's direct route to Indianapolis" completing SIU 3 if vast regional public opposition can be overcome and the media continues to ignore facts suggesting NAFTA/CAFTA I-69 from Evansville to Bloomington to Indianapolis is not wanted or needed by many beyond the reach of the Evansville Newspaper market.

3. At the same time Cintra or some other International Toll Road Consortium borrows from the USA by private activity bonds, low interest USA loans to build the Comedy Corridor bypass. Then the hope would be that all of these deals could be pulled together and the Privateer owned NAFTA/ CAFTA free trade, International Toll Road would be leased for 50, 75 and 100 years.

4. Look out Fort Wayne, under this understanding of Toll 69 when the absurd Comedy Corridor finally makes sense, you will be part of the prize. Your interstate 69 will be Toll 69 too. Despite Daniels statements saying that existing Interstates cannot be tolled, this is not in fact the case since ISTEA_LU in 2005 and federal "Tolling and Pricing" programs.

Actually if Daniels really wanted to make some "Buy Indiana" sense, he would just sell I-465.

He could build any road he wanted serving virtually nobody or anybody and get rid of all Hoosiers income tax and property tax just based on the selling price for I-465.

Of course Daniels has claimed that he can't sell and existing interstate. That was true until 2005 with the new ISETEA_LU Federal Highway Administration funding bill. Now "Tolling and Pricing" rules do allow any road to be converted to a privatized toll road, just by proving congestion or a number of easy to reach criteria for any Interstate that would be a profitable candidate for such a change. I-465. http://www.i69tour.org/toll-IN.html

If Daniels wants to be the 5% return on investment banker for all Hoosiers, then I-465 leasing is where our little Napoleon should set his sites.

We have warned that to understand Daniels and I-69 privatization we must look to Texas:

Daniels claims that this has already been done in Texas... well not exactly. Daniels is following Texas's model, but he is also leading the charge to over-charge us for our transportation.

Cintra and Macquarie are planning Privatized Trans Texas NAFTA Corridor routes there and have promised to build an $8 billion dollar Toll-69/Toll-35 to Evansville and Kansas City, but the money is not like the Indiana Toll Road Sale (Lease).

These new construction (new terrain) projects are simply build it for all development and toll profit rights for 3 or 4 generations. Indiana and Texas get no revenue, just unpopular new Interstates with new unproved Private Tolling.

Sent to the Indianapolis "Talk Back" to a Reason Foundation Guest Editorial, 11/05/06

Privatized tolling is supported by the Reason Foundations study, Should we sell our toll roads.

The Reason Foundation document supports and the powerful elite who are promoting it's conclusions support selling by long term leases (three to four generations) our trade and transportation corridors, because:

1. The democratic process will not allow legislators to charge as high of tolls as will a corporation not hampered by public controls.

2. They now accept that you cannot build our way out of congestion, so they have surrendered to the idea of price us out of congestion.

Tolling may well have some place in the transportation mix, but segmenting our highway "system" into hundreds or thousands of individual properties owned by foreign corporations with the single motive of maximizing profit for up to 99 years on that specific "property" is not the way to do it.

This type of motivation will build under utilized luxury segments, lobbying continuously to prevent congestion mitigation near their investment to enhance the value of their holding. That is, the best toll road property is one that has congestion as it's only alternative.

In a propertied society, we need permission to cross property lines for distances if we are going to have affordable travel. It is hard to imagine a more essential job of government than to wisely manage, maintain and adapt to the vehicles of any era.

The eminent domain authority of the state should be held with reverence."Eminent" comes from "The Eminent" or the "King". The private property of Hoosiers when acquired for transportation corridors/ right of ways should be held by "the state" and not transferred as a profit tool immediately to any body from anywhere. Four generation leases for up to 99 years to Cintra of Spain and/or Macquarie of Australia are un-American.

One international broker of these deals has privately stated that the problem with the Illinois and Indiana Toll Road sales was that they provided the maximum backside concession to the lease purchaser in order to bring in the maximum lease/purchase price.

He is a major supporter of privatization and the Republican party. He states that our lease should have required that the tolls go down over time, rather than up.

Persons who think they know what a toll road is, have not imagined this new privatized road properties concession investment tool.

This is not your fathers toll road. This is Indiana taxpayers locked in by "moral obligation"(actual wording in the Major Moves Law) to guaranteeing with our states general fund, growing volumes of traffic over time for 75 years. The major moves legislation would have allowed future Daniels' contracts without further scrutiny to be granted for up to 99 years. Our "moral obligation" to lease holders is suggested by the law for all future contracts too.

These contracts on our roads once written are "investment instruments" under the category "utilities" to be traded on the world markets based on multipliers of annual earnings. Already some analysts are warning that the "bubble" for this "sector" is ready to burst.

What this means to Hoosiers is a pressure to provide a profit by pricing to our new owners of our roads is intense.

Is this the best way to plan for the long term, the short term or even for the current transportation needs?

Is this anyway to treat the property taken from Hoosier families who cleared this land, nurtured it and made it their home for 150 years?

Parting Thoughts

One executive who negotiates these privatization contracts has said of the Indiana Toll Road, the Illinois Toll Road deals, that the states of Indiana and Illinois gave up too much for the maximum up front payment, with too little back side return and too little pricing protection and performance guarantees.

In the case of I-69, including the Corridor 18 SIU 2, Comedy Corridor that Daniels has suggested today, all we get is a road that very few thinking Hoosiers would want. It will be built with our USA loaned to International Investment firms from Private Activity Bonds and the privateers profits will be guaranteed by Major Moves like "Moral Obligation" by the Indiana General Fund tax dollars and no compete clauses.

If you question any of our assertions or claims, we welcome your requests for documentation. countus@i69tour.org

COUNT US! Blogs Daniels' November 6th 2006 Commerce Connector (aka: Comedy Corridor) and the dropping of Tolling from I-69 3C.

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