Earlier this week, the Pasadena Star News ran a story about a significant change taking shape with the financing for Phase 2A.
In September, the Metro board approved a plan to issue bonds on anticipated Measure R revenues. Senior staff at Metro recently informed the Authority that the agency anticipated that the bonds would provide adequate funding for Phase 2A as the project needs them.
Today, BusinessWeek ran a story that Metro led the week’s issuers with a $740 million debt (aka bond) sale. The article confirmed that proceeds from the sale would “be used to finance the Metro Gold Line Foothill Extension to Azusa and phase two of a light rail to Santa Monica.”
Why is this significant?
-The project will no longer need to be financed by the design-builder.
-Eliminating financing costs will likely save tens of millions of dollars.
-The project will still be completed years ahead of Measure R’s schedule.
-Did we mention the additional 3.3 million boardings/year anticipated on the line in year one?