THE DEVIL IS IN THE DETAILS

Examples: HB 1008 Indiana Toll Road Concession and Lease Agreement by and between the Indiana Finance Authority ( IFA ) and Cintra – Macquarie.

Concession Agreement is on the Internet: http://www.in.gov/ifa/tollroad.html/

HB 1008 Taxation of Operators – All property owned by the foreign corporation is exempt from property taxation.

NOT IN AGREEMENT. Maintenance Amount –  Indiana Governor’s administration claims the concessionaire will spend $4.4 billion to maintain Toll Road. This amount is not in any agreement. There is no penalty if concessionaire spends less.

NOT IN AGREEMENT . Due Dillgence , - Agreement does not require Indiana Finance Authority to scrutinize concessionaire applying standard corporate due diligence practices for mergers.

Page 95, Sec.19.1 to 19.7.  Dispute Resolution. - No penalty for poor management. IFA cannot Sue for beach of agreement in state court. Mediation and Arbitration panels have NO Power To Award Punitive Damages. IFA must bbear its own attorney fees, expenses, and costs.

Page 75, Sec. 14. (e). Adverse Action – Opening of competing highway shall constitute a Compensation Event. Pay Them If They Lose Money.

Page 39,  Sec. 3.16. Engagement of Police – Requires Indiana State Police to provide traffic patrol and traffic lae enforcement services on the Toll Road.

Page 42 , Sec. 5.4. Acquisition or Condemnation by State of Additional Lands. – Allows eminent domain of adjacent properties.

Page 28, Sec. 2.8 . Intended Treament  for Federal and State Income Tax Purposes – Agreement is intended for US Federal and State income tax purposes to be a sale of the Toll Road to the Concessionaire. For tax treatment , it is called “a sale” of Tool Road Facilities and Toll Road assets. This allows concessionaire to take depreciation as a business expense amounting to millions of dollars. This will result in lost revenue to the Federal Treasury .

Page 62 , Sec. 11.7 . Buy Indiana Presumption – Concessionaire agrees to a Goal of 90% Buy Indiana presumption. There is NO REVIEW and NO PENALTY if Goal is not met.