U.S. DOT confirms $300 million for Denver Union Station redevelopment


U.S. Transportation Secretary Ray LaHood said that the Denver Union Station project will receive just over $300 million in federal loans through an unprecedented and historic innovative financing arrangement using the Department of Transportation's Railroad Rehabilitation and Improvement Financing (RRIF) Program and the Transportation Infrastructure Finance and Innovation Act (TIFIA) Program. The project is funded with a unique financing structure and for the first time combines credit assistance from both programs.

The loans are being
awarded to the Denver Union Station Project Authority, a non-profit, public
benefit entity formed by the city in July 2008, through a partnership with the
Regional Transportation District, City and County of Denver, Colorado
Department of Transportation, Denver Regional Council of Governments and Denver
Union Station Metropolitan District.

"This project epitomizes
the importance of livability principles to promote transportation mobility and
strong communities," said Secretary LaHood. "Not only will Union Station be the
centerpiece for the Denver region’s multi-modal transportation system, it will
serve as a magnet and anchor for residential, retail and commercial
development."



The redevelopment project
is a 50-acre public-private mixed-use development located in lower downtown
Denver. The loans will finance new intermodal transportation facilities which
include an underground bus terminal with 22 bays, a light-rail terminal
consisting of three tracks and two platforms for existing and planned routes
and an intercity and commuter rail facility consisting of eight passenger
tracks, platforms and service and storage improvements. Also included are the
extension of the 16th Street Mall and the Shuttle service, accommodation of the
Downtown Circulator service, as well as pedestrian improvements and improved
street and replacement parking and utility infrastructure. Integration of these
services will provide travelers seamless connections and access to public
spaces.

Since 2000, downtown
Denver has averaged 6.6 percent annual growth. The project will have an
immediate positive benefit on the economy and it is estimated that the Denver
Union Station public sector investments will create over 7,000 new jobs during
construction. Completion of construction is expected to take four years.

Together the TIFIA and RRIF
loans constitute approximately 58 percent of all funding sources for the
project. Under the financing plan, an RTD bond as well as tax increment
revenues pledged to DUSPA will be used to repay the debt. RTD will assist with
the construction management of the transportation improvements and will own and
operate the facilities after the construction period. 

The TIFIA and RRIF loan
programs can help advance qualified projects that otherwise might be difficult
to finance because of the size, complexity or uncertainty over the timing of
project cash flows.