Huntingburg, Jasper considering interlocal agreement to study potential U.S. 231 takeover

The Huntingburg City Council tabled a resolution that would authorize a cooperative study with the City of Jasper on the potential impacts of taking over portions of U.S. 231 from the Indiana Department of Transportation.

Mayor Neil Elkins clarified that the resolution was not to accept the state highway but instead, for “working together with other local units of government and negotiating the terms of relinquishment.”

The proposed interlocal agreement would allow the two cities to jointly hire the consulting firm Avenew to conduct a comprehensive study examining the costs and effects of highway relinquishment. The study had an estimated cost of $53,000 for the City of Huntingburg’s portion, prompting the council to request more clarity on those costs.

City Attorney Phil Schneider provided background on the situation, explaining that INDOT plans to relinquish portions of the current Highway 231 if the Mid-States Corridor is constructed. Under relinquishment, local governments would assume responsibility for maintenance, safety, structures, storm sewers, culverts, signs and stoplights within their jurisdictions.

“Relinquishment means those units of local government would take over that portion of the highway that is in their jurisdiction,” Schneider said. “It would be responsible for all aspects of the highway, including maintenance, safety, not only maintenance of the surface, but of all structures, storm sewers, culverts, stops and stoplights.”

The state has allocated $75 million for improvements and would negotiate with local governments to fund maintenance obligations for up to 10 years. However, many details remain unclear about the relinquishment process, current highway conditions and actual costs. Mayor Elkins did say $25 million of that is slated for improvements to the highway north of Haysville.

“We’re not real clear on all the aspects of relinquishment, what it would cost,” Schneider told the council. “We’re not clear on what the current condition of the highway is.”

He explained that the two cities and the county had met with the consulting firm a few weeks ago to explore the possibility of retaining their services. The proposed study would investigate highway conditions, estimate future costs and traffic patterns, examine safety considerations and assist in negotiations with INDOT for funding. Avenew would deliver findings by the end of February 2026 if approved by Sept. 30.

Council members expressed concerns about proceeding without more information about the consulting firm and the agreement itself. The situation became more complicated when Dubois County recently withdrew from participating in the interlocal study.

“Since our meeting, Dubois County has indicated that they are not interested in participating in the interlocal study,” Schneider told the council. “I don’t know what that means. It could mean they are not going to accept the relinquishment.”

Councilman Jeff Bounds raised questions about the city’s negotiating power if local governments refuse to accept relinquishment.

“What if we said no we’re not going to take over 231 and so did Jasper and so does the county,” Bounds asked. “Would that stop the project or would they say sorry you guys are getting it whether you want it or not and now you just really messed up your negotiation deal?”

Schneider acknowledged uncertainty about the legal ramifications but suggested that refusing relinquishment could result in reduced state maintenance of the existing highway.

“If we don’t accept relinquishment, we’re not going to be high on their maintenance schedule,” he said. “And then our hands were really tied. If the Mid-States Corridor is constructed, the state will not get federal fund for the old 231.”

Bounds noted that the City of Jasper had already conducted internal assessments of potential costs, examining factors such as snow removal, traffic signals, road striping, and surface maintenance.

Mayor Elkins explained that the city lacks specialized equipment that INDOT currently uses, such as wider-blade snow plows with steel plows.

However, local control could also provide benefits, including faster and potentially less expensive improvements, without the need for federal regulatory requirements. “We were looking to put a sidewalk along the west side of U.S. 231 between roughly Steinkamps up to the grocery store,” Bounds said. “There was going to be forty-thousand-something dollars of engineering fees required by INDOT in order to put two blocks of sidewalk there.”

Elkins agreed that the city could have some cost-saving advantages for future projects.

Avenew was selected based on its experience with similar relinquishment projects, including work in Franklin and other Indiana communities. Many of the firm’s employees are former INDOT personnel, which Elkins viewed as advantageous for negotiations.

However, Councilman Bounds said he wants unbiased information, given the suspicions that these studies can lean towards whoever is paying for them — a complaint commonly cited by those who oppose the Mid-States Corridor and the studies conducted in its support.

Council members requested additional information about Avenew’s background, references from similar projects and clarification about contract terms before the next meeting.

Elkins told the council that he could provide them with information on the firm’s other studies, including the Franklin project, which he cited as an example of how local control helped revitalize downtown by slowing traffic speeds, contrasting with INDOT’s focus on moving traffic efficiently through communities.

“I personally feel that this study is warranted, but I’m not sure that this is the right company or this is the right study or this is the right agreement,” Councilman Steve McPherron said.

The resolution would have authorized the mayor to enter into the interlocal agreement and allowed the Board of Public Works to negotiate a contract with Avenew. However, final approval and funding would still require council action.

Councilwoman Pam Bolte said that it seemed the study would answer many questions she had heard about the impact on local businesses, how traffic would flow, and how it would affect other city streets.

The council unanimously voted to table the resolution until the Sept. 9 meeting to allow time for gathering additional information about the consulting firm and project details.

The study timeline requires approval by Sept. 30 to meet Avenew’s delivery schedule of February 2026, creating pressure to resolve questions quickly while ensuring due diligence in the decision-making process.

“As a body, we are here to protect the city and the citizens first and foremost,” Elkins said. “We need to have the proper information in order to make that decision.”

Correction: The study is expected to cost the city about $53,000 in total. Not $53,000 per month as originally stated in the article.