Land bought for I-69 route tops $184M

The number of homes and businesses the state needs to clear out for the last leg of the I-69 extension could exceed all the properties taken in the first five legs combined.

Indiana Department of Transportation officials said the state paid $184 million for 348 properties in the first five sections, Evansville to Martinsville, of the interstate expansion project. The acquisitions included 249 homes, 60 businesses, 31 rental properties and eight farms.

INDOT estimates that in the  sixth and final section, a more populated stretch from Martinsville to Indianapolis, it could acquire as many as 279 homes and 96 businesses. Agency spokesman Will Wingfield said the estimate is a largest-case scenario because the final path of the highway has not been determined and the final number of properties bought is likely to be lower. Officials won’t be able to estimate the cost of the land purchases until the final route is chosen and appraisals of the land are complete.

INDOT announced Tuesday it would rebuild Ind. 37 into the multilane interstate, choosing that route over four others under consideration. The exact path of the highway  could veer from the existing Ind. 37 by 2,000 feet either way. But even if I-69 follows Ind. 37 exactly, land would have to be taken to make room for large interchanges, on- and off-ramps, and a wider road. INDOT said the road needs 400 feet of clearance across.

Under the powers of eminent domain, the state can take private property for public use. In the stretch from Bloomington to Martinsville, the state paid $47.4 million for 152 properties.

INDOT was unable to estimate the construction costs for the last section of the interstate, but it is expected to be higher than the other legs because Section 6 will have more interchanges, underpasses and overpasses. The rest of the 142-mile-long highway will have 18 interchanges; the last section could have nine interchanges and 14 crossovers. The 21-mile fifth leg, currently under construction, will have four interchanges and four overpasses and will cost $394 million.

The cost of the entire project was estimated at $3 billion. About $700 million was devoted to the project from the $3.8 billion the state collected by leasing the Indiana Toll Road to a private operator under then-Gov. Mitch Daniels, but that money is gone.

For property owners along Ind. 37 between Indianapolis and Martinsville, the next couple years could be tense. INDOT said it won't know the final route and what land it needs until 2018.

In Greenwood’s Glenn’s Valley neighborhood near Wicker Road and Ind. 37, Al Peoples’ front yard touches the shoulder of the state road. He said he and his neighbors are already on edge.

“It’s a hundred feet to my back door,” said Peoples, 59, who has lived in the three-bedroom home for 20 years. "They're probably gonna want some of that."

Peoples said he received a letter from the state about 1½ years ago saying surveyors could show up on his property, but they never did. But because of the uncertainty he has delayed fixing his deck and redoing his bathroom.

“I don’t know what is going on, and neither do any of my neighbors,” Peoples said. “There should be someone here (from INDOT) to explain things to us.”

He said many of the residents are older, but three young couples recently bought houses in the neighborhood.

“I feel sorry for them if they have to get rid of their houses in a year,” Peoples said.

Wingfield said when the properties are identified, INDOT will contact the owner for in-person  “kitchen-table meetings,” and a representative will be assigned. A third-party appraiser will value the property, which will be reviewed by a second appraiser. To request a change in the appraisal the owner must submit documentation to back it up.

Chuck Pate, owner of Wayport Kennels, advised property owners in Section 6 to “do lots and lots of homework” about their property to make sure they get a fair offer from the state.

Pate’s kennel was located on Ind. 37 in Section 5, and he was forced to sell in January 2015.  But delays in the sale and finding a new location were exhausting, and he had to close for 13 months. He opened in February 5 miles away and is still trying to regain his lost customers.

“Being closed, that’s business you don’t get back,” he said.

Planning for the I-69 extension began 17 years ago.  Construction of the last leg is expected to take two to seven years depending on the design and how quickly funding is acquired. Assuming the rest of the planning phase goes smoothly, the final section would be set to open between 2022 and 2027.

Ind. 37 chosen for last leg of I-69 to Indianapolis

Call IndyStar reporter John Tuohy at (317) 444-6418.  Follow him on Twitter: @john_tuohy.

Cost breakdown

The state has paid $184 million for properties in the first five sections of the I-69 extension. Here is the breakdown:

Source: Indiana Department of Transportation