Feds Advance Illiana Toll Road

CHICAGO – The federal government has given Illinois and Indiana the go-ahead to advance plans for a more than $1 billion toll road both states hope to build with financing from a public-private partnership.

The Federal Highway Administration issued its tier two record of decision Thursday marking the completion of the project’s environmental planning phase.

“This action provides federal authorization for Indiana and Illinois to move the project forward from the planning phase to the implementation phase, laying the foundation for the continued exploration of public-private partnership opportunities for construction, maintenance and operation,” the Illinois Department of Transportation said in a statement. “Land acquisition efforts, including landowner relations and local planning activities, also can continue.”

The project’s fate remains in question. Despite unwavering support from Indiana officials and current Illinois Gov. Pat Quinn, Gov.-elect Bruce Rauner, who beat Quinn in the November election, has not taken a position on the controversial project.

The Metropolitan Planning Organization Policy Committee recently voted in favor of renewing its GO TO 2040 plan with the toll road project – which was added last year. Its inclusion in the plan is required to secure federal help to build the Illiana Expressway project.

The 47-mile road would link northwest Illinois Interstate 65 with Illinois' Interstate 55.

The vote came one day after the board of its sister organization the Chicago Metropolitan Agency for Planning voted 10-4 in favor of removing the Illiana project. The failure to reach a super majority prevented the action from taking effect. The agency's board then voted 10-4 against renewing the GO TO 2040 master plan.

The two states have finalized a development pact for the proposed Illiana Corridor toll road that commits the two to a combined funding contribution of up to $350 million. The binding agreement calls for both states to use their best efforts to complete their respective portion of the project by the end of 2018. It outlines each state's roles, responsibilities and project management duties, as well as project delivery requirements and schedules.

The initial "conceptual" estimate for the road is up to $1.5 billion based on the first environmental impact study, but "it is anticipated that the Tier 2 EIS will identify, refine, and detail additional cost factors that will modify the projected conceptual costs," the agreement says.

Illinois has committed up to $250 million to the project and Indiana between $80 million and $100 million, according to the pact. The project would be financed through a mix of state and federal transportation program funds, proceeds of bonds, private activity borrowing, Transportation Infrastructure Finance and Innovation Act loans, and developer contributions.