Mid-States Corridor rolls forward with business sector support, community blowback
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State and local agencies are pushing the gas on plans to forge a new highway in southern Indiana aimed at increasing connectivity to Indianapolis and nearby expressways.
The Mid-States Corridor has been a long-proposed idea to accelerate travel times from the industrial hubs of Jasper and Huntingburg, and has seen new life after renewed public and private sector pushes resulted in landmark studies for the project, despite significant community pushback questioning the project’s motivations.
The first environmental study was completed in 2022, resulting in the selection of a preferred route out of five options. That path is 54 miles long, cutting through 12 counties and stretching from I-64/US 231 to I-69. It hugs the city of Japser and drops south to the east of the city and Huntingburg.
A second study is underway diving into refining the highway’s path and solidifying plans to move forward.
Business leaders say the corridor would be a game changer when it comes to shipping and economic growth. Meanwhile, residents concerned with the project believe it’s not necessary, saying it is propelled by the interests of major industries and does not have an adequate reason or goal to demolish houses and farmland.
A road to connectivity
The primary purposes of the highway are to improve business and regional connectivity as well as create connections to existing nodes, according to a statement from the Indiana Department of Transportation; safety was a secondary goal.
Another project also occurring in the area is $75 million of improvements on U.S. 231, a winding two-lane road and the current harbinger of traffic to and from the area. The project is attributed to localized mobility and safety needs.
The preferred alternative route was chosen because it serves the goals outlined, INDOT said. The study concluded it has the lowest environmental impact and the greatest projected economic growth of the five potential routes. The road will benefit all travelers in the region, according to the state.
Through this route, about 600 to 900 acres of forest, 1,350 to 1,800 acres of farmland and 109 to 149 businesses, homes and other institutions would be scrapped to build the road, according to the study. The study said the route would reduce travel time by 25 to 43 minutes to key locations.
“An important responsibility of INDOT is to serve new or significant changes in travel patterns which result from Indiana’s dynamic economy,” INDOT said in its statement. “Changes in market conditions will require new linkages. INDOT could not address its responsibilities without providing improvements to address these needs.”
The Regional Development Agency’s role
The state utilized a Regional Development Agency to fast-track funding for a corridor study that otherwise would have taken years to complete, said agency chair Mark Schroeder, former chairman and CEO of Jasper-based German American Bancorp.
Using the RDA allows for the “maximization” of local resources, INDOT said, and the agency shares in the greater regional goals. The first study totaled about $7 million, about half of which was funded by local government agencies. The remaining $3.8 million was raised from about 50 different private entities, Schroeder said.
RDAs’ potential powers were expanded through a 2017 state law authored by State Sen. Mark Messmer, R-Jasper. It paved the way for the agency to be used in the project.
“This is the first regional infrastructure RDA in Indiana and exactly what I envisioned in 2017 when authoring SEA 128 with then-State Rep. Mike Braun,” Messmer said in a 2018 Indiana Republicans press release about the intersection of the law and project. “We created a process that allows local government to partner with the private sector to help advance regional infrastructure projects across the state, and I look forward to seeing the possibilities this process creates.”
The RDA is one of 17 participating agencies in the project, acted as a funding vehicle and did not have project decision-making power for the tier-one study. The RDA is not fundraising for the tier two study, Schroeder said, so, instead, it will be a participating agency representing its local government entities.
Corridor opponent Teresa Kendall alleges the RDA was used to circumvent public input and has greater potential power beyond a fiscal agent. She and others said they are worried the corridor RDA will expand beyond its scope, saying quasi-public partnerships like such give them pause.
“They may not have it initially,” Kendall said. “All the cities and the counties have to do is say, ‘RDA, we give you that authority.'”
Through a Memorandum of Understanding, Schroeder said responsibilities were laid out, and they were careful to state they were not responsible for making decisions about the study’s direction or findings. There has been some confusion regarding their authority, he said, but they have made a significant effort to clarify that to their meetings’ attendees.
“We were not advocating for any specific type of roadway any particular route,” he said. “What we were advocating for was a study to determine that.”
Addressing business needs
Dubois Strong, the county’s economic development agency, is in full support of the corridor. President Ed Cole said from small to big businesses, he’s only heard positivity about the project.
The region’s manufacturing industry is dependent on connectivity and efficiency, he said, so keeping its shipping costs down makes the region and its companies more competitive in the market. The road could generate $1 billion per year in new spending for Dubois and Spencer counties, according to a Dubois Strong-commissioned study; it also estimated the creation of about 7,000 jobs.
“We see it as that the future growth of Dubois County in southern Indiana is really dependent upon our ability to connect to the rest of the state, especially the state capitol,” Cole said. “There is an enormous amount of momentum and interest in seeing this move forward.”
Dubois Strong President Ed Cole talks about the potential impact of the Mid-States Corridor.
The corridor also has the potential to attract people to move there, he said, and help those who commute to their jobs in the county get there faster. Tourism would also increase, he believes, with easier access from the north and to nearby attractions like French Lick Resort and Holiday World and Splashin’ Safari.
The corridor will also make the travel safer, Cole said. Currently, semi-trucks are using U.S. 231, which can result in limited visibility and passing, which has made it difficult to attract new business.
This is something the community wants, he said, and is proven by the few million dollars raised for the tier-one environmental study.
The German restaurant and statewide attraction Schnitzelbank Restaurant opened its doors in 1961, but the family that operates it has resided in the southern Indiana region since the mid-1800s. The project is slated to have a negative impact on the family if it moves forward in its current form.
Allen Hanselman, one of the owners of Schnitzelbank, said the corridor is poised to bulldoze five of his family’s homes. If that happens, he said that may force them into early retirement, and it’ll be up to the next generation to keep the family business going.
“I really do believe that we would probably, if they tear down our family homes, I don’t think we would stay here,” Hanselman said. “Most of us are at retirement age. We would probably move into the Florida area.”
The Indiana Economic Development Corp. did not provide comment to Inside INdiana Business on the potential economic impact.
Communal concerns
Stemming out of opposition for the road is the grassroots Coalition Against the Mid-States Corridor, led by Mark Nowotarski and other residents. Their lawn signs populate busy corners and front lawns troughout the county.
What’s frustrating the group’s members is that they believe its the region’s big wigs are pushing forward the project they call “destructive” for local homeowners and farmers. Resident Marisa Durcholz said hundreds of people showed up to various meetings to protest the project.
“Now not everybody spoke,” Durcholz said, “but when when a speaker would say how many of you in this room or against this mistake corridor? I’d say 98% raise their hand.”
Durcholz’s house is in the 2,000-foot zone where the road could be placed, meaning she and her family don’t know if they would lose their house. If the tier two study reveals her home is impacted, she said she can’t find a similar-sized house and acreage in the county. Otherwise, her front yard currently filled with a pond, trees and wildlife will be a highway.
They question the need for a new road, citing analysis and research that supports the idea all necessary roads have already been built. They have no problem with improving U.S. 231, they said, because the road’s footprint has already been established.
“Everyone has built their lives around that road footprint,” Kendall said. “We don’t need to go outside of that.”
Corridor opponent Teresa Kendall talks about needed U.S. 231 and how they want an expansion project to stay in the already determined road footprint.
Severing off parts of the cities is another worry, Kendall said, mentioning the effects I-465 and I-70 had on Indianapolis. She’s worried it’s going to cause some areas to deteriorate. Other smaller cities are going to lose the tourism dollars from traffic that would be re-routed to the corridor, she said.
“It’s literally going to come through it and create like a zone of winners and losers,” Kendall said.
People will always be impacted when a road is being built, Schroeder said, but this process will seek to limit the inconvenience. There is a silent majority in support of the corridor, he said, and a small group can have a loud voice with social media.
Significant public comment was received in response to the first study’s Draft Environmental Impact Statement, spanning over 1,200 pages with many residents saying “do not build.”
The Martin County Board of Commissioners, Martin County Council, Loogootee mayor Noel Harty and Loogootee City Council publically oppose the corridor. The Sierra Club, Indiana Forest Alliance and Hoosier Environmental Council also voiced their opposition to the corridor in an April 2022 letter for its potential environmental impact.
U.S. Sen. Mike Braun’s constituency includes much of the project’s region. His business, Meyer Distributing Inc., is based in Jasper. When asked about his involvement, a spokesperson said:
“While Senator Braun’s U.S. Senate office is not involved in this project which is being led by INDOT and the local development authority, we will continue to monitor proposals and the results of environmental studies about impact to the area, and listen to constituents’ thoughts about the project, negative or positive.”
They said something that has riled the community is the feeling like they’ve had no say in whether this road should be built.
INDOT said in its statement that the “extensive” outreach and public comment process has followed all state and federal procedures. Additional public input opportunities will be available throughout the second environmental study.