State OKs new IndianaToll Road operator with improvements promised

The state board that acts as owner of the 157-mile highway across northern Indiana voted 5-0 to consent to a transfer of operations from the bankrupt Indiana Toll Road Concession Co. to IFM Investors — under the same lease terms adopted in 2006.

IFM agreed in March to pay $5.725 billion to creditors of the current operator for the rights to manage the road and collect tolls for its use during the 66 years remaining on the lease.

The state is not receiving any additional income from the transfer. Indiana collected $3.8 billion when it agreed to lease the previously money-losing highway for 75 years to an Australian and Spanish partnership that later failed to meet its debt payments.

Ken Daley, an Australian who will lead management of the Toll Road for IFM, told the state finance board his company is ready to get to work, and looks forward to becoming a partner with localities in Northwest Indiana and across the length of the highway.

"We're the investor and the owner, so we have real skin in the game," Daley said. "In reality, we intend to be part of this community for much longer than most of the people in the community."

Daley announced IFM plans to spend $260 million over the next five years to improve the Toll Road, including $138 million for new pavement, increased spending on bridge and ramp replacement and maintenance, installation of dynamic message signs to warn of closures and road hazards, along with $34 million for new travel plazas.

He said replacing the dilapidated rest stops is part of the company's goal to improve customer service and ultimately "reset" the Toll Road for motorists and neighboring communities.

"This is going to take a radical change in terms of the way that the travel plazas are presented. We've already started the site surveys that will be completed by July 1," Daley said. "This is an area of high priority and we're hoping to have a completely different outlook in terms of travel plazas completed by the end of 2018."

Daley also said he expects all employees of the current Toll Road operator will continue in their positions once IFM takes over.

Chris Atkins, director of the Office of Management and Budget and chairman of the Indiana Finance Authority board, said he is pleased the Toll Road lease came through the bankruptcy process unaltered and the new operator plans to continue improving the asset.

"To me, it sounds like the agreement has worked as intended for just this scenario," Atkins said.