St. Joseph County approves $19 million commitment for State Road 2/Larson interchange; residents raise concerns about industrial growth

The St. Joseph County Board of Commissioners voted unanimously Oct. 14 to approve an interlocal agreement with the Indiana Department of Transportation to construct a divergent diamond interchange at the intersection of State Road 2 and Larson.

The agreement places a $19 million financial obligation on the county for the project; $7 million of that commitment will come from Amazon and the remaining roughly $12 million will be covered by the county. County staff said the $12 million figure is not purely cash outlay: it includes donated property, previously completed design work and reimbursements the county has received. The total project cost is estimated at about $50 million, with federal funds and state administration expected to cover the remainder. Construction is targeted to begin in March 2026 with completion in November 2027.

Bill Shalio, economic development director, told commissioners the county has coordinated multiple funding sources over several years, including a previous bond issue, reimbursements and donated land. “So those donations of property drive down our cost into the project,” Shalio said, describing donations from GM (about $6.65 million in land) and Amazon (about $1 million in land) as part of the funding mix.

During public comment, local residents challenged the project's necessity and warned it could spur additional industrial development. Dan Caruso of New Carlisle called the interchange unnecessary and said a pair of elevated ramps would be a cheaper alternative. “This is unnecessary and is going to encourage more industrial invasion of our area by making it more accessible,” Caruso said.

Mary Countryman, also of New Carlisle, criticized officials’ characterization that taxpayers were not on the hook. “Some of this money is taxpayer money, and the money that was established into the TIF fund was taken away from taxpayers,” she said, and argued that increased capacity will bring more traffic and accidents to narrow local roads.

Commissioners asked staff several questions about funding sources and schedule. Shalio said the project is a federal project administered by the state and that the Amazon contribution has been confirmed via a purchase order. He also said the county had set aside funds in a bond and received reimbursements that will be applied to the county share.

The motion to approve the interlocal agreement carried unanimously.

Votes at the meeting on the interlocal agreement were recorded as an affirmative majority and commissioners indicated support; the formal tally recorded the motion as approved.

The public comments at the meeting broadly linked the interchange to larger debates under way in the county about industrial zoning, tax abatements and water use for data centers and manufacturing facilities; those matters were raised during the public-comment period rather than as part of the agreement vote.