Sound Transit has been awarded a package of Transportation Infrastructure Finance and Innovation Act (TIFIA) loans by the U.S. Department of Transportation (USDOT) worth up to $3.84 billion for the financing of the Downtown Redmond Link Extension and refinancing of an additional five projects.
The total savings to Sound Transit is estimated to be more than $630 million over the life of the loans, while helping move projects forward that will create and sustain tens of thousands of jobs.
“Refinancing our earlier TIFIA loans will create more than $630 million in savings for our region’s taxpayers, helping us deliver the largest transit infrastructure program in the country as quickly as we can. Expanding the program to include the Downtown Redmond Link Extension expands our savings still further,” said Sound Transit CEO Peter Rogoff. “With our population growing and our planet warming, the stakes are high, and we are creating truly impactful benefits. We thank Secretary Buttigieg, the Build America Bureau and our congressional delegation for their dedicated leadership toward making our transit expansions possible.”
The TIFIA loans will replace the current loan for the Sound Transit Northgate Link Light Rail Extension, which is scheduled to open this fall. This project is a 4.3-mile light-rail extension, including three new stations, from the University of Washington north to Northgate. The TIFIA loans also include refinancing for the East Link, Lynnwood Link and Federal Way Link extensions of light rail as well as the Operations and Management Facility East projects. Additionally, it provides financing for the under-construction Downtown Redmond Link Light Rail Extension.
The projects will provide benefits to the central Puget Sound area, including reduced congestion greenhouse gas emissions, expanded routes and more reliable service and increased ridership capacity.
The Build America Bureau, which administers the TIFIA credit program, was established under the Obama Administration as a “one-stop-shop” to streamline credit opportunities while also providing technical assistance and encouraging innovative best practices in project planning, financing, delivery and operation.
The bureau says it has the resources and full commitment to provide additional flexibility and financial assistance to transportation projects in regions impacted by the COVID-19 pandemic to minimize the negative effects and aid in the recovery from this crisis.
USDOT has closed $35 billion in TIFIA financings to date, supporting more than $122 billion in infrastructure investment across the country.
