Decades in the making, I-69 EVL-IND reaches the Finish Line

Down a stretch of road on 2200 West Epler Avenue, a 1974 Indianapolis 500 pace car adorned with large U.S. and Indiana flags approaches a throng of reporters and industry officials. A smiling Governor Eric Holcomb (R) sits atop the car,  looking as if he couldn’t be less concerned about the sweltering heat around him, magnified by the pavement and crowd. This is a reasonable assumption, considering that today Governor Holcomb is keeping one of his campaign’s biggest promises: to finish linking Evansville to Indianapolis through I-69.

If you’re reading this newsletter, you’re probably aware that the sixth and final section of the I-69 extension, beginning in Martinsville and ending in Indianapolis, reached its end of the road on Tuesday, August 6 with the opening of a new interchange at I-465. If you’re new here, you may not be aware, however, of how long of a road the project has traveled.

The origins of I-69 began long, long ago. The tale (legend?) begins in 1944 when President Franklin D. Roosevelt (D) submitted a proposal titled “1944 Interregional Highways Report,” containing plans for a highway following the route of I-69. A dense work (with no less than five appendixes!), the report recommended “the designation and improvement to high standards of a national system of rural and urban highways totaling approximately 34,000 miles and interconnecting the principal geographic regions of the country.” Roosevelt had tired of widening existing highways. He felt that the new proposal would result in fairer economic distribution within the transportation sector, deriding endeavors that “enrich one man and give no profit to his neighbor . . . if there is to be an unearned profit, why should it not accrue to the Government – State or Federal, or both?”

On June 29, 1956, President Dwight D. Eisenhower (R) took the wheel by passing the Federal Aid Highway Act of 1956, which in turn authorized the creation of the Dwight D. Eisenhower National System of Interstate and Defense Highways. Evansville was snubbed in the proposed system, which led to then-Evansville Mayor Vance Hartke (D) writing to the Chamber of Commerce, urging them to include U.S. 41 to prevent “the inevitable end for Evansville as a metropolitan center.” He got his wish.

A tangible version of I-69 as we know it emerged after the passage of the North American Free Trade Agreement in 1994, with officials envisioning I-69 to facilitate trade between Canada, the United States, and Mexico. This granted it the nickname “the NAFTA superhighway.”

“The opening of the I-69 Finish Line corridor completes not only a direct connection between Evansville and Indianapolis, but also to and through Kentucky and Michigan all the way ultimately to our important Canadian and Mexican supply chain trade markets,” notes Governor Holcomb at Tuesday’s ribbon-cutting event.

That international trade route, was a key selling point, bringing a buy-in from other states and the federal government.

Dr. David Reed, an economist who moved from the Mutz Administration Department of Commerce to the Hudson Institute – where he worked for Mitch Daniels (R) more than a dozen years before Daniels even entertained thoughts of running for governor – is largely credited with creating the concept of the NAFTA Superhighway, as some labeled it back then, and he got strong buy-in from then-Indianapolis mayor Bill Hudnut (R) – Dr. Reed’s father-in-law.

After prior studies failed to justify I-69, a 1995 feasibility study found a roadway project linking Indianapolis to Houston through Evansville “would create enough long-term economic benefits to more than offset the cost.”

The northern portion of I-69 from Fishers to Michigan was constructed during the national spurt of interstate highway construction during the 1960s and 1970s, leaving only southwestern Indiana without an interstate connection to the center of the state.

The soft-spoken, earnest, and omnipresent James G. Newland, Sr. was the key State House lobbyist for the effort through the 1990s, and he was later honored with an I-69 bridge overpass in Daviess County named in his honor.

Back to 2024: Indiana’s last three governors – Governor Holcomb, former vice president Mike Pence (R), and former Gov. Mitch Daniels (R) – stand together at the ribbon cutting, united in their shared accomplishment.

One relevant former Indiana governor was absent, however. One could argue that modern-day I-69 is the legacy of the late Governor Frank O’Bannon (D).

The O’Bannon Legacy

Gov. O’Bannon began his term as governor on January 13, 1997, just a few years after I-69 got the green light. Then, it hit a snag: the Federal Highway Administration delayed the release of a drafted environmental impact statement for I-69, citing the need for “stronger economic arguments for the road.” Indiana Department of Transportation, Federal Highway Administration, and U.S. Environmental Protection Agency officials huddled together to “jump-start” the statement, but this congress resulted in few action items. That 1997 roadblock could have marked the death of I-69 – at least, for the version that has coalesced today.

As reported by the Bloomington Herald-Times, NBC News aired a 1997 segment on I-69’s newly-built Evansville-to-Indianapolis section as part of its “The Fleecing of America” investigative reports. The not-so-flattering NBC broadcast garnered national attention, with some viewers believing I-69’s price tag was becoming far too bloated and that a “new terrain” route, instead of simply expanding U.S. 41, would cut down on costs while boosting efficiency. Shortly after, state officials delayed I-69 for up to 24 months, as INDOT became bogged down searching for a plan that could please both naysayers and supporters.

Enter a diverse coalition of 22 Indiana mayors from Evansville, Bloomington, Loogootee, Petersburg, Oakland City, Linton, Washington, Princeton, Boonville, Mount Vernon, and other communities. The group presented Gov. O’Bannon with a petition requesting that the “new terrain” Evansville-to-Indianapolis route be used for I-69 and for construction to begin immediately.

There was plenty of other public feedback, too. An INDOT hearing drew a crowd of more than 1,000 people with the new terrain route as the populace’s preference. A counterargument was mounted by the U.S. Department of Interior backing the U.S. 41/I-70 route as the most “environmentally preferable” option for I-69. Perhaps no Hoosier official responded as spicily, however, as then-Terre Haute mayor Judy Anderson (D), who asserted the only supporters of the Evansville-to-Bloomington route were parents looking to shuttle their children back and forth from colleges. As told to the Evansville Courier & Press, Mayor Anderson’s response to those parents was simply “Send them to the University of Southern Indiana” (you may recall that USI was originally Indiana State University-Evansville, a regional campus).

Meanwhile, J. Bryan Nicol, the INDOT commissioner at the time, told the Terre Haute Tribune-Star that Gov. O’Bannon expressed a healthy curiosity about the environmental impact and route itself throughout the process, listening to public and private feedback. Gov. O’Bannon chose the new terrain route in 2003, citing shorter commute times to Indianapolis. Sadly, deciding on the configuration of I-69 would be one of Gov. O’Bannon’s last acts in office, as he passed away later that year.

As Gov. O’Bannon’s struggles may foreshadow, this was not the end of the I-69-based political squabbling. While every Indiana governor since Gov. O’Bannon has declared himself to be the governor who would, to borrow the verbiage of Governor Daniels, “build this road and put an end to the … political football,” tangible construction didn’t begin until July 2008.

When all was said and done, the 142-mile I-69 expansion cost Indiana more than $4 billion to build over 16 years.

Daniels’ Major Moves

That’s not to say each one of Indiana’s governors didn’t play a critical role in I-69 extending from Evansville to Indianapolis reaching the finish line.

For example, if you don’t remember Gov. Daniels’ 2005 I-69 Major Moves debacle, we’ll remind you. Much ado came from Gov. Daniels’ “aggressive” 10-year transportation plan aiming to improve and expand Indiana’s highway infrastructure. The plan was funded by $2.6 billion in revenue from the lease of the Indiana Toll Road. Bundled into Major Moves was an I-69 extension, which would become a toll road financed separately from I-80 or I-90. This aspect was controversial to both Republicans and Democrats alike; a legislative hubbub ensued. Some believed that Major Moves was rushed and deserved more careful consideration, some contended that the program was critical to Indiana’s economic development and should be pushed out of the legislative chambers ASAP.

This dissonance resulted in political snafus like the one our Hannah News Service sister newsletter INDIANA LEGISLATIVE INSIGHT reported on in 2006: “[Gov. Daniels] brought in a passel of mayors from around the state for what many were told would be a briefing on Major Moves . . . but which they later discovered was a press conference showing support for the program. If they indicated backing for any part of the plan, they found their names on the list of Major Moves supporters. Some Demo mayors in particular were reportedly not happy campers.”

In the end, a “combination of arm-twisting, deal-making, and the sheer brute force of the Office of the Governor applied in a way Hoosiers seldom see combined to bring enough Republican House members in line . . . to keep the Governor’s Major Moves transportation plan moving.”

Cut to November 9, 2006 – Gov. Daniels changes course and cancels toll plans for I-69 in southwestern Indiana. His new plan, a series of tollways in the metro donut, was shut down by the legislature. The Office of the Governor can’t win them all.

Gov. Daniels does, however, finalize a deal to lease the Indiana Toll Road in northern Indiana to a private company, generating some additional funding.

He was also able to fulfill a commitment he had made earlier in his administration: Just about a month before leaving office, he was able to drive on the newly opened section of I-69 between Evansville and Washington. Some critics pointed to rushed work that cut some corners, however, including lower standards for materials and construction that allowed for earlier completion but meant that his successors in office would have to face more maintenance-related expenditures earlier than should have been the case . . . but that was largely overlooked in the fanfare (though later candidate for governor quietly expressed surprise and concern about this to our sister newsletter).

Holcomb: The Governor to Reach the Finish

Work on the final section began back in 2022 as part of the I-69 Finish Line project, which upgraded almost 30 miles of S.R. 37 to interstate standards through Morgan County, Johnson County, and Marion County. I-69’s development was fully funded by Gov. Holcomb’s Next Level Connections program.

In his final months in office, Gov. Holcomb managed to complete I-69 “on budget and three years ahead of schedule.” While speaking to reporters before the ribbon-cutting, he reflects, sounding humbled by the achievement, repeatedly emphasizing the power of Hoosier collectivism.

“Our own came together … and it feels fantastic,” he enthuses. He is aware that it “takes a village,” so to speak, that hundreds of Hoosiers have played their part in I-69’s completion. “This historic milestone … is the culmination of decades-long conversations, planning efforts, and progress,” Gov. Holcomb emphasizes. “We’ve gone from a lot of talk, conversation, discussion, multiple studies, to action and dirt-turning, to today.”

The completion of the largest new interstate project in the United States may not be his legacy alone, but the only one who can claim the title of “The Governor Who Built This Road and Put an End to the Political Football” is Gov. Holcomb . . . at least as of this Tuesday.

While, on paper, the I-69 project is complete, INDOT officials acknowledge to us that minor construction work will continue in the area through the end of 2024.

To clarify, the nationwide I-69 has a long way to go. The final version will run from Port Huron, Michigan to Laredo, Texas. I-69’s southern stretch through Arkansas, Louisiana, and Texas is mostly incomplete apart from a few segments near Houston and McAllen. Why the difference in progress? While Congress mandated that I-69 was a done deal, state governments oversee funding their respective independent portions.

A good example of that process is the Ohio River Crossing (ORX) project, which will connect Kentucky to Indiana’s I-69 and continue the interstate’s progression in linking the Midwest.

The first portion of ORX, centering on road improvements in Henderson, Kentucky, will wrap up next year. The second piece

of the puzzle, consisting of road improvements in Evansville, is slated to end in 2026.

The big issue is the third portion: a four-lane Ohio River bridge connecting Evansville to Henderson. As one can imagine, crossing the river is the largest and most expensive part of a project titled “Ohio River Crossing.” Kentucky and Indiana have yet to secure complete funding for the bridge. Work is expected to conclude by 2031, but officials representing both Indiana and Kentucky have said the goal is to speed up the process.

INDOT estimates that the completion of this portion I-69 to Indianapolis will rake in $4.1 billion for Indiana’s economy over the next two decades.

Indiana University Kelley School of Business Professor Phil Powell tells WISH-TV’s Hernan Gutierrez that the old adage “time is money” plays into the dividends. “If you’re running a trucking company, or … plumber company in Indianapolis, 10 to 15 minutes [of time saved] doesn’t sound like a lot … but if you drive dozens of trucks or … vans, that adds up over time,” Powell asserts. He also highlights that the expedited commute to downtown Indianapolis may cause a “residential boom” in Johnson County and Morgan County, especially in the wake of reduced congestion on the southwest side of town. “As Hoosiers, like anybody else, we value time,” Powell states.

While many Hoosiers, like IU’s Powell, are excited about I-69’s promised boons, the highway has had opposition since its conception. Indiana Capital Chronicle’s Leslie Bonilla Muniz points out that its detractors consisted of “environmentalists, farmers, [and] budget hawks,” while many others believe I-69’s completion signals the loss of “land and a way of life.”

We may also be years or decades away from a final verdict, and such an assessment may ultimately be found in the eye of the beholder. When the I-465 loop around Indianapolis was completed, it was viewed as a success, but over the past decade concerns have been raised about communities and a sense of community) lost from the construction; physical division of neighborhoods; environmental issues; and whether the project would have better served the city had it been built at or below grade.

Some may find it sobering that building critical infrastructure in one state took decades upon decades of politicking, negotiation, and debate. As INDOT’s Natalie Garrett put it at the ribbon-cutting: “There are people who never thought we’d even get this far.”

Gov. Holcomb echoed those thoughts, admitting that there were “cynics” who “wondered if [I-69] would be completed in their lifetimes.”

“They’re going to have to find something else to doubt in their lifetime,” the Governor quips. “But it’s not going to be I-69 anymore, as of today.”