The state is officially in charge of Section 5 of Interstate 69.
The Indiana Finance Authority on Monday finalized an agreement to end its contract with I-69 Development Partners, which the state originally selected to build and maintain the 21-mile stretch of interstate from Bloomington to Martinsville.
As part of the agreement, the state is reimbursing I-69 Development Partners’ bond holders for $246 million.
INDOT will now work with subcontractors to complete construction, which is nearly two years behind schedule.
“Our focus is to compete this crucial stretch of roadway that provides a promising path to economic growth for Hoosiers and businesses in southern Indiana,” Governor Eric Holcomb said in a statement.
The IFA will use highway revenue bonds to retire the developer’s private-activity bonds. Because the state’s bonds are rated significantly higher, the transition will result in a cost savings over time.
The state decided to take over the project after several construction delays and financial issues with Section 5.
A previous version of this story referenced the relationship between the state and I-69 Development Partners as a partnership, but it was a contractual relationship.