Construction starts this week on the project that is expected to take a year to complete.
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The pursuit started in Orange County and took authorities into Crawford County, through Milltown and into Harrison County.
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The Paoli Police Department was called to Paoli Square on Tuesday for reports of a "suspicious item."
State troopers, the Paoli Police Department, and the Orange County Sheriff's Department are all investigating.
Phillips pleaded guilty to the misdemeanor charge on May 26 in Orange County Superior Court, police said.
Chief Randy Sanders requested an investigation into former Sergeant Tyler Phillips four days after Phillips submitted a letter of resignation.
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Police say one of the suspects set up a drug deal with a man who had already clearly identified himself as an officer.
The Paoli Police Department in Indiana is looking for two people who may have been involved in a hit-and-run crash.