Re: Indy Star: Indiana's I-69 land deals spur federal review
Greg Buck
If we just appreciated the Earth as our life support system, including by ending worship in the temple of economic growth, waste by government would be corrected tremendously.
Individuals & Organizations:
Clearinghouse for Actions Against Interstate 69 in Indiana
http://groups.google.com/group/clearinghouse-for-actions-against-i-69-in-indiana
From: Thomas & Sandra Tokarski <ca...@bluemarble.net>
Date: Sun, Feb 10, 2013 at 11:14 AM
Subject: Indy Star: Indiana's I-69 land deals spur federal review
To: Susan Sammis <sam...@bluemarble.net>
Federal officials are reviewing the prices Indiana paid as it acquired land for the I-69 extension and other highway projects across the state.
The probe comes in the wake of an Indianapolis Star investigation into questionable land purchases on the I-69 project in Southern Indiana.
The Federal Highway Administration review will focus on "right-of-way practices with regard to administrative settlements," the same practices questioned in the Star investigation.
Among other problems revealed by The Star, the state offered $7 million for 32 properties its appraisers valued at $3.34 million. In some instances, the settlement documents offered little or no justification for the inflated payments.
The probe at Indiana Department of Transportation's Indianapolis office wrapped up last week. "We are still analyzing the findings and have no report yet," the Federal Highway Administration said in a statement.
INDOT spokesman Will Wingfield and the agency's real estate director Scott Adams didn't respond Friday to messages. The office of Gov. Mike Pence also did not respond to an email sent Friday afternoon.
Indiana, which received $626 million in federal funds for the I-69 project alone, has a lot at stake in the federal investigation.Similar reviews have stripped local governments of federal funds. In a 2009 Nebraska case, the highway administration pulled back $6.9 million of an $11.4 million project, forcing Sarpy County to issue bonds to pay for the project.
And the federal government already has targeted Indiana for not following its strict standards.
This year, federal officials said they would restrict $40.4 million in federal funds because the state failed to comply with U.S. mandates to combat drunken driving. Dennis Faulkenberg, a former deputy commissioner and chief financial officer at INDOT, said that loss alone would be devastating.
"Forty million, that's still a significant amount of money," said Faulkenberg, who now heads Appian, a transportation lobbying firm in Indianapolis. "That's a big highway project."
The state is appealing, but the federal action shows the difficulties that could arise if the state's land acquisition practices also do not pass federal muster.
This year, Indiana is scheduled to receive $807 million in
federal transportation funds, and the federal review is not
limited to I-69. It would examine the administrative settlements
offered on properties across the state, including the massive U.S.
31 widening project through Westfield.
And it comes as Indiana lawmakers and Gov. Mike Pence scramble to find cash to meet the state's transportation needs. The $3.8 billion derived from a lease of the Indiana Toll Road is all spent or allocated, and legislators are discussing a number of options, including a hike in the gas tax, to fund bridge and road maintenance.
Pence also has said he plans to complete I-69 all the way to Indianapolis. If funds aren't found, the project will dead-end in Bloomington by 2014.
State Sen. Brent Waltz, R-Greenwood, said the federal probe couldn't have come at a worse time.
"At a time when there are furious discussions in some circles in the Indiana General Assembly even to raise taxes to fund transportation," he said, "it's very disappointing when state government has jeopardized tens of millions of dollars in funding for not doing what they should have done in the first place."
Other questions raised
Administrative settlements aside, The Star has uncovered other questionable INDOT practices that have caught the attention of the governor.
On Monday, Pence directed the state's ethics policeman to "make certain" to thoroughly investigate the state's purchase of land owned by INDOT Chief of Staff Troy Woodruff and his family.
In a story last week, The Star revealed that Woodruff did not
disclose his own land sale for the I-69 project. The Star's
investigation also uncovered six I-69 deals that paid $1.8 million
to Woodruff's uncle and cousins, who then bought land from
Woodruff and his immediate family for more than market value.
Inspector General David Thomas said Friday he was still reviewing the Woodruff sales.
During The Star's investigations, several ethics and legal experts called for greater transparency in INDOT's land acquisition process. For instance, the settlement documents obtained by The Star are confidential under Indiana law, as are other documents, such as appraisals, that explain the rationale for payments.
Pence has said he was willing to discuss whether Indiana should open such records. Legislation that would open the records is stalled in the General Assembly.
"I'm glad that the federal government has access to records that everyday citizens do not have," said Aaron Smith, founder of Watchdog Indiana, a taxpayer advocacy group. "I hope in the process of their investigation they serve an important watchdog function for all of us."
Star reporters Chris Sikich and Maureen Groppe contributed to this story. Follow Star reporter Ryan Sabalow at twitter.com/RyanSabalow. Call him at (317) 444-6179.