Extensive negotiations move the LTA closer to refinancing at LA 1
Baton Rouge - Extensive negotiations between DOTD, on behalf of the Louisiana Transportation Authority (LTA), and the United States Department of Transportation (USDOT), continue in a positive direction related to the refinancing of the La. 1 improvement project loan.
The USDOT Transportation Infrastructure Finance and Innovation Act (TIFIA) Program Office has invited LTA to submit an application for credit assistance with the loan that funded the La. 1 improvement project in Lafourche Parish. If approved, the refinancing would save Louisiana over $100 million over the life of the debt.
“Although this invitation is not a guarantee that we will get the loan, our chances are greatly improved,” said DOTD Undersecretary Michael Bridges.
If approved, the refinancing could be completed by mid-November 2013.
DOTD, on behalf of the LTA, submitted a letter of interest for credit assistance through the USDOT TIFIA program last October. Extensive negotiations between DOTD and the TIFIA program office took place through the fall and spring and as a result, the USDOT TIFIA Program Office has formally invited the LTA to submit an application for credit assistance.
Without the refinancing, the LTA would be required to increase the tolls another 88% above the 20% increase that took place on January 1st of this year. The toll consultant report indicated that for every $1 million in additional toll revenue raised by increasing the tolls, the sales tax and personal income tax of Grand Isle and Port Fourchon would drop by $450,000.
The LTA approved the submission of the TIFIA application at their meeting. The application will be submitted on July 22.
Posted on Sun, July 21, 2013