Drivers passing through Northwest Indiana will have to pay more in toll costs in the coming months as the state and the region prepare for a potential Chicago Bears stadium.
The Indiana Finance Authority approved a resolution Tuesday to allow the Indiana Toll Road to increase tolls by at least 1.5% or by inflation, whichever is greater, twice a year in exchange for $700 million in payments.
Currently, a full length journey on the 157-mile toll road costs $16.21 for a Class 2 passenger vehicle and $190.68 for a 7-axle truck, according to the Indiana Toll Road toll calculator.
The resolution allows for the Indiana Toll Road’s private operator, ITR Concession Company LLC, to increase tolls twice a year, beginning Dec. 31 this year and then every June 30 and Dec. 31 every year after that, according to the resolution passed by the Indiana Finance Authority.
The operator will pay IFA $700 million: $300 million within 30 days of the resolution going into effect, then another $200 million within a year of the first payment and another $200 million within two years, according to the resolution.
The resolution also stipulates that the toll road operator has to pay at least $25 million in capital improvements to the Indiana Toll Road within five years.
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The money will go into a special payment reserve fund and can be spent on transportation and infrastructure projects in Lake, Porter, LaPorte, Elkhart, LaGrange, Steuben and St. Joseph counties, according to the resolution.
The resolution is on the agenda for the State Budget Committee, which meets Thursday afternoon in Indianapolis.
Under Senate Enrolled Act 27, which is a stadium authority bill that will create the financial structure for a possible stadium for the Chicago Bears, the bill allowed the state to renegotiate its lease with the Indiana Toll Road.
The Chicago Bears are willing to invest over $2 billion in a stadium near the Wolf Lake area in Hammond. The state will invest around $1 billion in the stadium through various financing avenues, House Speaker Todd Huston, R-Fishers, previously said.
The state will issue a bond for the construction of the stadium, which will be repaid through Hammond’s 12% admissions tax, once the city’s common council passes it, and a Professional Sports Development Area specialized tax district, Huston said.
The admissions tax will generate around $12 million once the facility begins holding events. But the revenue could be higher depending on the type of events held in the stadium, according to the fiscal note of the bill.
The bill allows the Hammond city council to designate a stadium development district within the city but that can’t include areas of the PSDA. Under the stadium development district, at least 12% of the allocated property taxes have to be transferred each year to the city of Hammond’s general fund, according to the fiscal note of the bill.
To further support infrastructure costs, Huston said the state will renegotiate its lease with the Indiana Toll Road. The state has also asked Lake and Porter counties to adopt a 1% food and beverage tax and for Lake County to pass a 5% innkeepers tax, Huston said.
If both counties approve a 1% food and beverage tax, they could generate between $12 million to $18 million annually. The innkeeper’s tax could generate $5.4 million annually, according to the fiscal note.
Gov. Mike Braun signed the bill into law within hours of its final passage by the Indiana legislature in February.
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“We made it clear from the beginning that Indiana is open for business. I’m thrilled to sign Senate Bill 27 to create the framework to build a new world-class stadium in Northwest Indiana. Now let’s get this across the goal line,” Braun said in a statement on social media with a picture of him signing the bill.
After Braun signed the bill into law, the Bears sent out a statement: “Indiana has taken important steps over the last few months, and we are grateful for the leadership reflected by Governor Braun signing SB 27, establishing the framework for a stadium development in Northwest Indiana. We continue to work on the necessary due diligence and appreciate the ongoing engagement with Indiana state and local leaders.”
