LA Metro applauds U.S. DOT’s $546-million loan

Los Angeles-area Metro officials applauded the U.S. Department of Transportation announcement of a low-interest loan of $546 million for the Crenshaw/LAX Transit Corridor project, representing the largest public works investment in South Los Angeles.

"This loan will
enable Metro to more quickly build this important light rail line in the
Crenshaw District and represents the first major federal funding received for a
Measure R transit project," said LA County Supervisor and Metro Board
Chair Don Knabe. "We applaud the USDOT and Secretary Ray LaHood for
selecting this project – a project that will go a long way, in providing much
needed transportation improvements to an important region of the county."

The $546-million loan
from the federal Transportation Infrastructure Finance and Innovation Act
(TIFIA) program will help get construction under way for the Crenshaw/LAX
Transit Corridor project in the Crenshaw District, which will connect to the
Metro Green Line and the Expo Line, currently under construction, eventually,
providing direct train service to a planned LAX transit center.

Metro is currently
preparing environmental documents and soon will begin preliminary engineering.
Construction could start in late 2011 and be completed in the 2016-2018 time
frame.

The announcement is a
major step forward in funding the 30/10 Initiative, the Metro Board approved
policy that seeks to build 12 Measure R transit projects in the next 10 years
instead of the next 30 years by using federal loans and other financing.

"This loan money
will be spent to get the project going, creating thousands of jobs and millions
in economic development opportunities once completed – funding that will help
jump start the economy and put people to work," said Knabe.

The Crenshaw/LAX Transit
Corridor Project calls for construction of a new 8.5-mile light rail line to
extend between the Exposition Line at Exposition and Crenshaw Boulevards and
the Metro Green Line LAX station. The project connects downtown Los Angeles,
West Los Angeles and the South Bay, and provides critical linkages for the
region’s residents, employees, and national and international visitors.

The alignment is a
combination of at-grade, below-grade and above-ground sections. Six stations
are proposed at Exposition/Crenshaw, Crenshaw/Martin Luther King Jr.,
Crenshaw/Slauson, Florence/West, Florence/La Brea, and Aviation/Century. Two
optional stations at Crenshaw/Vernon and Aviation/Manchester are being studied.
In addition to the rail line, the project includes development of a maintenance
facility with four sites currently under consideration.

The Los Angeles County
Economic Development Corp. estimates that the rail line will generate
approximately 15,100 jobs directly related to the project both created by Metro
and project workers that will spend money in the economy.

The total capital cost of
the project is $1.470 billion in 2008 dollars. The TIFIA loan will be repaid by
using Measure R half-cent sales tax monies approved by LA County voters in
2008.