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LaPorte County Officials Seek Multi-County Bid On Toll Road

By Barbara Brosher

Posted November 13, 2014

A Northern Indiana county wants to band together with surrounding communities and take back the Toll Road.

LaPorte County announced Wednesday they're working to put a multi-county bid together for the Indiana Toll Road lease, after ITR Concession Company filed for Chapter 11 bankruptcy earlier this year.

LaPorte County officials are reaching out to the six other counties along the Toll Road this week, hoping to convince them to sponsor a not-for-profit corporation that would bid on the lease.

They'd manage the Toll Road, but would hire an experienced private company to operate the 157-mile stretch. The counties involved would enter into an interlocal agreement, which would spell out how any excess revenues from the Toll Road would be distributed.

LaPorte County Attorney Shaw Friedman said they'd use non-recourse revenue bonds to finance the project.

"Now, non-recourse revenue bonds may be sponsored by the participating counties, but they're sold by the not-for-profit in the municipal bond market and they'd be secured solely by Toll Road revenues, which means there are no county taxpayer funds at risk in the event of a default," Friedman said.

Investment Bank Firm Piper Jaffray compiled a report for LaPorte County officials, detailing the benefits of public ownership of the Toll Road.

Friedman said taking back control of the asset would result in millions of dollars in profits coming back to Indiana communities.

"We've got, as you can imagine, some cash-starved counties along the Toll Road that could really use that excess cash for roads, bridges and highways," he said.Â

Friedman said they've already gotten commitments from a couple of counties, but will need more support before submitting a preliminary bid next week.

The bid would have to be submitted by the preliminary deadline that has been set as part of the Chapter 11 bankruptcy process.

ITR Concession Company LLC, the current leaseholder for the Toll Road, filed for Chapter 11 bankruptcy protection in September.

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LaPorte County Officials Seek Multi-County Bid On Toll Road

By Barbara Brosher

Posted November 13, 2014

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