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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

Regional Connector Transit Corridor

Regional Connector Transit Corridor
Project Type
Public Transit
Financing Type
TIFIA
Status
Credit Agreement Executed
Sponsor/Borrower
Los Angeles County Metropolitan Transportation Authority (LACMTA or Metro)
Project Description

The Regional Connector Transit Corridor Project (Regional Connector) is a 1.9-mile underground light rail connection between the Little Tokyo/Arts District Station to the 7th Street/Metro Center Station in downtown Los Angeles. The existing Metro Gold Line will traverse this new section from the Little Tokyo/Art District and continue along the existing and future Metro Expo Line to Santa Monica, CA. Similarly, the Metro Blue Line will continue beyond its current terminus at 7th Street/Metro Center along this new section and beyond to the existing and future Metro Gold Line to Pasadena.

The Regional Connector extends from the Metro Gold Line and will allow passengers to transfer among the Metro Blue, Expo, Red, and Purple Lines, bypassing Union Station; it will provide one-seat continuous service across Los Angeles County. By linking these lines in downtown Los Angeles, the project creates a north/south line from Claremont to Long Beach, and an east/west line from East Los Angeles to Santa Monica. The project also includes the construction of three new stations: 1st Street and Central Ave, 2nd Street and Broadway, and 2nd Place and Hope Street.

Through the Regional Connector, the Metro Rail system will better serve two of the region’s most robust markets. According to LACMTA, the construction of the project is expected to generate 15,400 jobs and approximately $2.38 billion in direct, indirect, and induced business revenues. Upon completion, the project will provide further economic benefit in creating new direct rail access in districts with high job densities and growing populations. The project will also create substantial environmental and mobility benefits by diverting an estimated 17,400 daily riders from the roadways by 2035. The traffic reduction of such a shift is estimated to eliminate roughly 69,050 metric tons of carbon dioxide emissions annually and reduce average travel time by approximately 13 minutes per daily trip. Through the TIFIA financing, this project was able to achieve the stated benefits at a savings of $12 million when compared to more conventional financing methods.

Project Details
TIFIA Assistance
$160.00M
Primary Revenue Pledge
Sales Tax Revenues
Project Cost
$1399.00M
Fiscal Year Closed
FY2014
Duration/Status
Advanced Utility Relocation began in February 2014.  The Design-Build Contract was awarded in April 2014.  Construction began on the project in July 2014.  Substantial completion is expected to be achieved in 2022.
Funding Sources
Federal Sources
TIFIA Loan: $160M
FTA New Starts Grant: $669.9M
CMAQ: $64M
State Sources
Prop 1A HSR General Obligation Bonds: $114.9M
Prop 1B General Obligation Bonds: $149.5M
Other State Funds: $2.6M
Local Sources
Metro Funds: $132.8M
Metro Lease Revenue: $64.2M
City of Los Angeles: $41.6M
Project Delivery/Contract Method
Design-Build
Project Advisers/Consultants
To the Project

The PFM Group - Financial Advisor
Fulbright & Jaworski - Counsel to the Borrower
Parsons Brinckerhoff - Preliminary engineering; EIR/EIS preparation
Metro Builders & Engineers Group - Utility relocation
Additional Advisors
To USDOT TIFIA JPO:

TIFIA Legal Advisor: Squire Sanders
TIFIA Financial Advisor: Infrastructure Management Group
Project Lender
USDOT TIFIA
Credit Assistance Detail
Direct loan: $160 million.  The TIFIA loan will be repaid with Measure R local retail sales tax revenue.
Financial Status
The TIFIA credit agreement was executed and financial close occurred in February 2014. "Interest payments began in 2019 and principal payments in 2020; The TIFIA Loan was prepaid in full in August 2020.
Innovations
Approximately 11 percent of the Project budget is funded from voter-approved sales tax measures devoted to transit projects, which will be used to repay the TIFIA loan.
Application Details
Applicant
LA Metro
LOI Fiscal Year Received
FY2013
LOI Received Date
Application Received Fiscal Year
FY2014
Credit Agreement Executed
Initial Eligibility Review
Review complete
Creditworthiness Review
Review complete
Application Review
Review complete
Estimated Project Cost
$1399.00M
TIFIA Request
$160.00M
Instrument Type
Direct Loan