I-49 prices cut, still eclipses $3B

State and federal officials should consider tolls, taxes and private-public partnerships to fund construction of I-49 South, which could ultimately eclipse $3 billion, said the executive director of a newly formed business-backed coalition seeking to make the corridor a priority.

“I want to say that everything is going to be on the table,” said Michel Michot, director of the I-49 South Coalition, who said the La. Highway 1 toll bridge in Leeville was the first such bridge permitted by the state in three decades.

“Have you driven to Houston, lately? Have you driven to Illinois or Florida or Oklahoma? You drive on toll roads in those states where people are paying for the roads they are using. I think it is something that the state needs to embrace,” he said. “The traditional models of financing just don’t work anymore.”

Michot, a 16-year Lafayette legislator who was termed out in 2012, on Monday gave an address to the Bayou Industrial Group, based in Thibodaux. He also floated the idea of a gasoline tax and contributions from private enterprise in addition to state and federal monies in an era defined by Congress’ earmark ban.

Awareness of the project and the intended benefits derived from a federal thoroughfare connecting New Orleans to Lafayette – and then, to Kansas City; and then, to Winnipeg, Canada by way of a second interstate – is increasing as links elsewhere draw closer to completion, but ever-pressing questions as to how to practically revamp U.S. Highway 90 and Interstate 10 in Lafayette and pay for the overhaul remain.

Stakeholders said that the economic benefits of the federally recognized connection are second to the establishment of an evacuation route. Traffic on Interstate 10 connecting New Orleans to Baton Rouge would also be eased, they say.

The newly formed coalition Michot heads aims to make the project relevant to state and national political discourse, would in turn help project segments navigate regulatory hurdles and become “shovel ready” and eligible for federal funds. A comprehensive, planned and “continuous effort” would replace a heretofore piece-meal approach, he said.

“We’re going to make it a campaign issue,” Michot said. “We have federal elections this year, we have state elections next year. … We also have a new governor coming in.”

The organization will primarily attain its funding through business groups.

More than 100 miles of the 160-mile I-49 South stretch have been completed or are under construction, according to the state Department of Transportation and Development.

DOTD announced $3.7 billion in potential I-49 South savings when it re-evaluated the corridor’s plans last year.

In the study phase right now, according to DOTD, are three major segments of the project west of Berwick: Wax Lake Outlet to Berwick; Lafayette Airport to La. Highway 88; and the Lafayette Connector, estimated to cost as much as $1.8 billion.

Transforming an 11-mile section of U.S. 90 to interstate standards is expected to cost $250 million and the 36-mile section from Lafourche to Jefferson parishes is estimated at $1.3 billion (down from $4.8 billion).

State Sen. Bret Allain II, R-Jeanerette, founded the I-49 South Coalition and has made the issue a priority before and during his first legislative term. He said he doesn’t believe decision-makers “short the public any with the alternative ground-level plan,” and indicated that momentum is mounting after the vast drop in anticipated cost.

Allain harbors an optimistic view of the project’s status.

“You finish that piece in St. Mary, and we are I-49 compliant from Lafayette all the way through La. 1 in Lafourche Parish,” Allain said. “That’s almost an 80-mile stretch that’s I-49 compliant. You finish that piece, and all we have is the connector in Lafayette, and you’re not but 16 miles to the 310 bridge.”

But I-49 South’s so-called eastern leg will need more work, too, according to DOTD spokeswoman Deidra Druilhet. Interstate standards will force outlying communities like Des Allemands and Paradis to have their access points reworked, in some cases.

“When you talk about upgrading U.S. 90 to interstate-grade standards, one thing we have to address is a lot of the median crossovers,” Druilhet said. “You have to develop an unhindered flow of traffic. We have to make sure that it is going to be safe for motorists that travel down that particular road.

“To right the issue, interchanges and overpasses at key locations are considered.”

The state is not yet sure how many rights of ways will have to be purchased, as those phases have yet to be designed, Druilhet said. The re-evaluation of original plans, which requires a supplemental environmental impact statement, is set to continue this year, she added.

Even after interchanges and/or overpasses are incorporated, the surface of Highway 90 may have to be altered, in both height and surface material.

“This particular study looked at the improvements that have been made in the area to alleviate flooding helped us in making the decision to stay at ground level,” Druilhet said. “

Among the suggested funding sources for I-49 South is the state’s budget surplus, spurred by a tax amnesty program. “If 1-49 South really is as important as we say, then all of or a substantial portion of this one-time budget surplus should be spent on it,” State Treasurer John Kennedy editorialized last month.

Michot also touted Kennedy’s idea to bond revenue from the state’s unclaimed property fund and split it between projects for I-49 North and South. The state sold $113 million in bonds for this purpose in December.

Gov. Bobby Jindal will present his proposed 2014-15 budget to legislators on Jan. 24. Some of the surplus may be necessary to bridge inter-budget shortfalls anticipated to arise from the current spending plan, the Associated Press reported. Some also want to see the money go toward replenishing the state’s “rainy day” fund.

The legislative session runs from March 10 to June 2.

More important than anything is to maintain a cohesive approach and finish portions of the transformation, which could spark a greater contribution from the federal government, Allain said.

“Obviously we are not going to be able to do the bulk of this without federal funds, but if we can gain a couple of destinations, which is not out of the picture, we can go from an 80-20 (federal-to-local) funding (share) to a 95-5 funding,” Allain said. “You pull something like that off and we can pull the timetable of this thing up by decades.”