...continued Ohio, Kentucky unite on $3 billion bridge, interstate project

Department of Highways, the project will include constructing five primary interchanges.
   The reason for the wide variance in projected project cost - between $2 billion and $3 billion - is that five design alternatives are still being studied.
   "I-75/I-71 is the major north-south interstate trucking route from Canada to Florida," said Hans. "And I-74 also intersects at this juncture where the Brent Spence Bridge is, here at the Ohio River between Cincinnati, Ohio and Covington, Kentucky. We have over 160,000 vehicles per day now crossing. By the year 2030, if nothing is done, we estimate there will be more than 200,000 vehicles per day," he added.
   How are the two states sharing the funding on this massive bi-state project? Did they get any dollars from the latest six-year federal transportation bill?
   Ohio and Kentucky are bearing the cost according to a formula, said Stefan Spinosa, project manager with the Ohio Department of Transportation.
   "Basically the states are splitting the local match based on the number of lane miles of interstate within the study area," Spinosa said. "Ohio is funding 54.5 percent and Kentucky is funding 45.5 percent. Ohio's got a lot more roadway system, even though Kentucky actually owns the river crossing."
   The Brent Spence Bridge Project did receive dollars from SAFETEA-LU, the six-year federal transportation bill President Bush signed into law in August 2005, but not mega-project dollars like the $239 million the new Mississippi River Bridge Project received.
   "In the latest T bill, SAFETEA-LU, $35.6 million went to Kentucky and $10 million went to Ohio," said Spinosa. "Ohio had previously committed enough money to get us through preliminary engineering, so the $10 million just replaced some of the money we'd already committed."
   Hans said Kentucky had also received $3.8 million from a previous federal transportation appropriation. "Our state matches with toll credits," he said. "Right now, there is no state funding in these early phases, but there will be in the construction phases."
   According to the U.S. Department of Transportation Federal Highway Administration, a section of the federal transportation reauthorization bill allows states to substitute certain previous toll-financed investments in lieu of state matching funds on current federally funded projects through the use of a "soft match" with units known as toll credits.
   With respect to a timeline, Hans said the two states are nearing the public involvement phase and hope to have a design chosen from the five alternatives by late 2008 or early 2009. Under this schedule, right-of-way acquisition would take place in 2012 and 2013 and construction would begin in 2015.

   Hans and Spinosa said the two states' political leadership - on both a state and national level - take seriously the Memo of Agreement dictating the split of matching dollars and are already laying out a strategy of how to campaign for dollars from the next six-year federal transportation authorization bill in 2011.
   "Ohio and Kentucky agree that this is a project of regional and national significance," said Hans. "We're already beginning to look at how we can get in on the next six-year T bill in 2011. The timing would be ideal for us."
   Are the states concerned about each state holding up its end of the promise to fund its percentage of the project?
   Hans said in addition to the Memorandum of Agreement, the document that spells out in detail the funding commitment, there is somewhat of a safeguard inherent in the due diligence required by the Environmental Protection Agency through the documentation it requires states to file when tackling projects like this one.
   "It is a large amount of dollars that will come out of the state's federal funding match," Hans said. "And no matter what project it is, or what level of significance it has, you will have people from other parts of the state saying, 'Hey, that's a lot of money that's not going to our area.' That's where the financial plan that NEPA requires us to file comes into play. It's just another specific, binding document that outlines specifically the details of the work we're committing to do and how we're going to make it happen."
   Hans begs to differ with states who don't regard MOAs as binding documents.
   "FHWA doesn't want the state DOTs to expend millions of dollars in design and not have a plan in place to pay for the project, and then put those plans away on a shelf," he said. "Technically we see those Memos of Agreement as legally binding. We (Kentucky and Ohio) are taking them seriously. By their very nature, they're hard to change."
   Each state is performing its own design work, the project engineers said, up to the state line.
   In terms of estimated construction costs, Spinosa said Ohio's portion of the project will run anywhere from $257 million to $556 million, depending upon which of the five design alternatives is selected; each has different alignments and lane configurations. Also included would be estimated design costs of up to $253 million, real estate and relocation costs estimated at up to $23 million and development costs of up to $177 million, plus an assumed inflation rate of 82 percent for the life of the project which translates to roughly $456 million.
   Kentucky's portion of the construction costs, Hans said, are estimated to range from $626 million to $849 million, again depending upon which specific design is chosen. Also included in the project's overall cost estimates would be design cots of up to $386 million, relocation and real estate costs estimated at up to $26 million and development costs of up to $148 million, plus an assumed inflation rate of 82 percent or $696 million.

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