Sound Transit moving to secure loans, bonds for ST3 expansion

st3On the same day the Nov. 8 ballot count will be certified by the state, the Sound Transit Board of Directors will begin taking steps to secure funding for the Sound Transit 3 expansion, which includes extending the light rail line from Lynnwood up to Everett.

The project requires a total of $2.9 billion worth of bond sales, federal grants and other credits to be secured this winter in order to launch the project. The first vote to secure two credit deals and begin raising local taxes will take place Tuesday, Nov. 29.

The deals would go a long way toward making the 25-year program known as “ST3” recession-proof, in terms of lowering the risk of a project being delayed, Chief Financial Officer Brian McCartan noted in a loan application, our online news partner The Seattle Times reported Sunday afternoon.

McCartan is intent on avoiding what happened during the last economic slowdown that began in 2008, when the agency indefinitely postponed a track extension to Star Lake in north Federal Way.

Interest rates have been historically low at just under 4 percent, but have creeping up since Nov. 1, raising “a significant risk to the agency’s cost of capital,” he told the transit board.

For the full story from The Seattle Times, click here.

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