TITLE
Recommendation to receive supporting documentation into the record, adopt resolution authorizing the issuance by the Board of Harbor Commissioners, on behalf of the City of Long Beach, of a loan to be provided by the United States Department of Transportation, and a related Subordinate Harbor Revenue Note, in an aggregate principal amount not to exceed $500,000,000, secured by a pledge and solely payable from Harbor Department revenues in the Harbor Fund Group; and, authorize the execution of all necessary documents. (Citywide)
DISCUSSION
On May 20, 2014, the City Council authorized the Board of Harbor Commissioners (Board) to incur a loan under the Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA) from the U.S. Department of Transportation in a principal amount of $325 million (2014 TIFIA Loan). Since 2014, interest rates have decreased and the Board proposes to: (1) cancel the 2014 TIFIA Loan; (2) incur a new loan under TIFIA from the United States Department of Transportation at a lower interest rate and an increased principal amount of not to exceed $500 million (New TIFIA Loan); and, (3) issue a Subordinate Harbor Revenue Note evidencing the payment obligations of the Board on the New TIFIA Loan. The proceeds of the New TIFIA Loan will be used to finance and refinance the costs of construction for the Gerald Desmond Bridge.
The TIFIA program provides federal loans for transportation projects of national significance. To qualify, a project must be eligible for existing federal ground transportation programs, be in excess of $50 million, and must be supported from dedicated user charges. Within one year of substantial completion of the new bridge, the Harbor Department intends to draw on the New TIFIA Loan and repay the Harbor Department’s Series 2018A Short-Term Notes, which were authorized by the City Council on September 4, 2018, and the Harbor Department’s Series 2020C Short-Term Notes, which were authorized by the City ...
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