Posted: October 4th, 2008

TCA receives extensive federal and state financial assistance, according to documents obtained from the Transportation Corridor Agencies (TCA) by The City Project under the Freedom of Information Act. The following are some of the major examples.

TCA submitted an application for $1.1 billion in federal loans from the FHWA under the Transportation Infrastructure Finance and Innovation Act (“TIFIA”), 23 U.S.C. 601-609, on June 8, 2008, as discussed below. Ex. 77.

TCA has a $120,000,000 federal line of credit through FHWA and CalTrans. Ex. 79, $120,000,000 Federal Line of Credit Agreement, Dated as of July 1, 1999, between Foothill/East Transportation Corridor Agency and the United States Department of Transportation, Federal Highway Administration, signed by Walter D. Kreutzen, Chief Operating Officer, TCA, and Kenneth Wykle, Administrator, Federal Highway Administration.

An “SLTPP Funding Summary” spreadsheet dated July 29, 2008, provided by TCA to The City Project shows a total of $41,483,276 in funds received under the State & Local Transportation Partnership (SLTPP). Ex. 76.

“The TCA remains committed to utilize federal funding to the maximum extent possible to enhance the streamlining of the environmental process for the SOCTIIP” (Southern California Transportation Infrastructure Improvement Project). Ex. 78, Letter from Walter D. Kreutzen, Chief Executive Officer, TCA, to Honorable Mary Peters, Administrator, FHWA, July 1, 2002.

The Los Angeles Times has reported on TCA’s request for federal funds. Dan Weikel, U.S. Funds Sought for Foothill Toll Road; Operators to ask for $100 million to help build Foothill South extension, L.A. Times, Mar 14, 2003, B3.

The $1.1 billion TCA loan application states as follows:

“This TIFIA application to the Federal Highway Administration represents the culmination of a five-year process which began with the creation of the Transportation Corridor System (“TCS”) in 2003 as a joint powers agency for the purpose of acquiring the toll road assets of the San Joaquin Hills Transportation Corridor Agency (“SJHTCA”) and the Foothill/Eastern Transportation Corridor Agency (“FETCA”); the members of the TCS are the SJHTCA and the FETCA (collectively, the “Original Agencies”). Upon the acquisition of the toll road assets of its members, the TCS will take over responsibility for the operation and maintenance of the San Joaquin Hills Toll Road, the Foothill Toll Road and the Eastern Toll Road, (collectively, the “System”), and construction of additional capital improvements to the System (the “future improvements”), provided certain responsibilities will be retained by the Original Agencies.

“TCS is seeking a $1.1billion loan under the Transportation Infrastructure Finance and Innovation Act (“TIFIA“) to finance a portion of the acquisition price for the System. The TIFIA loan will significantly lower the costs of the acquisition refinancing and generate substantial additional funding capacity for the nearly $3.0 billion of future TCS improvements. These future improvements . . . include a proposed additional southern segment to the Foothill Transportation Corridor (“Foothill South”) . . . .

“The acquisition costs will total approximately $5.1 billion and be funded with $3.2 billion in tax-exempt senior toll road revenue bonds, $1.1 billion in TIFIA loan proceeds, and $800 million in cash on hand. The acquisition proceeds in total will be used to defease all of the outstanding bond indebtedness of SJHTCA and FETCA incurred in connection with the planning, designing constructing and financing of the System.” Application for $1.1 billion in federal loans from the FHWA under the Transportation Infrastructure Finance and Innovation Act (“TIFIA”), 23 U.S.C. 601-609, June 8, 2008, Ex. 77.

For more details, visit www.savepanhe.org and www.savesanonofre.org.