Meeting_Body
SPECIAL BOARD MEETING
JANUARY 14, 2026
Subject
SUBJECT: MOBILITY CONCEPT PLAN PRIORITIZATION AND FUNDING STRATEGY
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
CONSIDER:
A. RECEIVING AND FILING status report on the Provisional Priority List of the Mobility Concept Plan; and
B. APPROVING the submittal of a Letter of Interest (LOI) to the United States Department of Transportation (USDOT) for a Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA) loan for the projects contained in the Provisional Priority List and pay related fees and expenses.
Issue
ISSUE
The Provisional Priority List of Mobility Concept Plan (MCP) Legacy Projects was adopted by the Board in September 2025. Given that these projects have partial or no Board-approved funding, staff is exploring options to fill this funding gap, including applying for a TIFIA loan . The first step towards obtaining a commitment of TIFIA credit assistance is the submittal of a Letter of Interest (LOI) to the USDOT.
Background
BACKGROUND
Since 2021, Metro has been working with the Games Mobility Executives (GME), a collaborative group including LA28, Caltrans, Metrolink, the Los Angeles Department of Transportation (LADOT), the City of Los Angeles Mayor’s Office, and the Southern California Association of Governments (SCAG), to develop a comprehensive mobility strategy and advance priority improvements for the 2028 Games.
In February 2025, Director Bass requested that the CEO provide recommendations for 1) a set of high-value, low-cost priority projects consistent with the 2028 Games MCP that could be funded locally without affecting major voter-approved capital projects including: bus lanes and bus priority improvements, light rail system improvements, key stations improvements, systemwide signage and wayfinding improvements; and any other appropriate projects previously approved by the Board for environmental and design; 2) an innovative funding structure for 2028 Games MCP legacy projects relying on local programs that would benefit cities in Los Angeles County; and 3) a technical assistance plan for local cities to expedite completion of their games-priority projects.
At the September 2025 Quarterly Special Board meeting, staff presented a ranked list of high-value, low-cost projects developed using a two-step prioritization process. The first step involved a qualitative evaluation that categorized projects into three priority levels, taking into account projects within workstreams that are unfunded, have longer durations to complete, the current project phase, the latest 2028 Games venue plan, and pending funding/grants. The Board adopted the list as the Provisional Priority List. Staff also presented a list of potential funding sources for the projects. The current report details the funding structure as requested, focused on the Priority 1 projects, since they are primarily construction projects requiring long lead times.
Discussion
DISCUSSION
Status of Projects
Since September 2025, staff have been working on several key projects from the Provisional Priority List. The focus has been on securing CEQA exemptions and developing 15% conceptual designs in collaboration with key stakeholders for the following:
• Stations: LA Union Station (LAUS) and 7th Street/Metro Center.
• LRT Improvements: Washington/Flower and Pico intersection upgrades, and improvements along the A and E Lines.
• Mobility Hubs: Norwalk Transit Center, Harbor Gateway, and Memorial Park.
To ensure these projects are delivered before the 2028 Games, staff conducted constructability analyses in coordination with Planning, Project Management, Operations, and Systems teams. These analyses led to revisions in the scope/budget of some projects. Attachment A contains a revised Provisional Priority List that maximizes project scope and ensures inclusion of all high-priority projects constructible within the Games timeframe that will substantively support Games delivery. The exceptions include the LRT projects, which require further detailed evaluation regarding procurement schedule, necessary closures, and overall schedule viability, and further evaluation of the construction impacts of the A/E Line Elevator at Union Station.
One project, the Metrolink Pomona Fairplex Platform Enhancements, was removed from the Provisional Priority List with concurrence from Metrolink. Working with Metrolink and LA28 on the initial access plan for the Pomona Fairplex, it was determined that spectator access will be accommodated through the existing Pomona North A Line and Metrolink stations, considering the physical, safety, and operational characteristics and limitations of the proposed venue.
Funding Awards/Commitments
The following funding awards/commitments have been confirmed for projects on the Provisional Priority List since September 2025.
• Metro Active Transport, Transit, and First/Last Mile (MAT) Cycle 2 Program: Total of eight Games-supportive projects funded, totaling $44,502,700.
• CMAQ/STBG: A total of$59,627,000 for Priority Level 1 Games supportive projects
• State Allocations: At the request of Caltrans, the California Transportation Commission allocated $39 million in construction dollars from their State Highway Operation and Protection Program (SHOPP) for the Norwalk and Harbor Gateway Transit Center Mobility Hubs.
The table below summarizes the updated cost estimates, committed funding, and remaining funding needed.
*See Attachment B for details; remaining funding needs to include 20% Program Contingency, i.e., $61.4M, totaling to $270M
Preliminary Funding Strategy: Priority Level 1
The estimated cost of all projects on Priority Level 1 of the Revised Priority List is $395.9 million.
The preliminary funding strategy to deliver Priority Level 1 is the following:
• Utilize all secured state/federal & local funding commitments, i.e., $148.6 million.
• Pursue a TIFIA loan to finance up to 49% of remaining eligible costs (currently estimated at approximately $270 million, including 61.4 million of program contingency for Priority 1 projects. Attachment B includes the Priority Level 1 Local Funding Gap for TIFIA.
The Priority 1 projects to be included in an LOI to USDOT include (i) Washington/Flower (ii), 7th Street/Metro Center (iii), LAUS (iv), A & E Line Interlock and Siding improvements (iii), and Mobility Hubs at Memorial Park, Harbor Gateway, and Norwalk. The projects were prioritized based on their potential to provide legacy improvements, TIFIA eligibility, and construction feasibility. This strategy is responsive to the Board's February 2025 directive to prevent Games-related legacy investments from negatively impacting significant voter-approved capital projects as 49% of the project cost will be financed with TIFIA and the planned repayment of the TIFIA loan can be scheduled over time from eligible sources that do not affect voter-approved projects. The proposed funding scenario safeguards current commitments for Measure M and Measure R. It relies on committed and anticipated local, state, and federal funds, augmented by the TIFIA loan Approval of the submittal of an LOI for a TIFIA loan provides one pathway to construction phase financing. In the meantime, Metro will continue to advance these Priority 1 projects to the next stage of project development.
Priority Level 2 and 3 projects have received partial funding via the MAT and Open Streets grant cycles. Staff will provide an update regarding the remaining funding gap for these projects later since these projects are currently not constrained by schedule.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Several projects in the priority project list will improve safety and reliability as they seek to add station improvements and system reliability. In particular, improvements allow for quicker recovery from service disruptions, critical during peak travel times such as the Games, when long delays between trains can result in overcrowding and other safety issues.
Financial_Impact
FINANCIAL IMPACT
The TIFIA LOI is the first step towards securing a TIFIA loan. Loans under the TIFIA program remain attractive relative to tax-exempt municipal bonds due to current market conditions and flexible financing terms. TIFIA loans bear an interest rate that tracks long-term U.S. Treasury rates. Staff expects this loan to be paid from local sources, consistent with Metro’s prior TIFIA financings, making the TIFIA loan rate comparatively more attractive. TIFIA loans also provide more flexibility on how the funds are used compared to traditional tax-exempt municipal bonds. TIFIA loans can be structured with financing terms which allow interest to be capitalized (accrued and added to the loan balance) after project substantial completion, an interest-only early payment period, and deferred principal repayment, among other favorable terms. Since 2012, Metro has closed four TIFIA loans, which were all repayable from Measure R 35% funds. After submitting the LOI, Metro may be invited to continue in the TIFIA process. If Metro decides to continue in the TIFIA process, Metro will need to reimburse the USDOT for the costs of the outside advisors who advise TIFIA on the transaction on determining a project's eligibility, credit analysis, and loan negotiations. This effort for the remainder of FY26 is estimated to be $250,000 and will be absorbed within the Games budget for FY26 in Cost Center No. 2031, Project No. 402028. This is a multiyear effort and Project Managers and Cost Center Managers are responsible for budgeting in future years.
Impact to Budget
Budgetary impacts for FY26 are minimized as staff are working within the adopted budget. Costs incurred to pursue a TIFIA loan cannot be added to the loan proceeds and will be covered with Prop C funds.
Multiyear Impact
The funding plan includes awarded federal and state grants, much of which were secured because the related projects support the 2028 Games. The balance of funding would come from local Metro funding sources, either through cash funding or debt financing in fiscal years 2026 through 2028. The local funding sources may include Proposition C local sales tax. The debt financing will reduce the budget requirements through fiscal year 2028 and result in debt principal and interest payments that could be paid from local funding sources, including operations-eligible funds, extending up to 30 years.
Equity_Platform
EQUITY PLATFORM
Staff continues to work with the Office of Equity and Race (OER) to support programs and projects identified within the MCP in considering equity in planning, design, and implementation. The MCP Provisional Priority List supports equitable access to mobility improvements across Los Angeles County. The updated funding strategy recognizes that Games related investments must also advance long term community benefits, particularly for transit dependent riders and communities with limited transportation options.
As staff refine project scopes, secure environmental clearances, and advance early conceptual designs, equity considerations are being incorporated into decisions about project sequencing, station readiness, and operational impacts. The planned closures of the A and E Lines required environmental milestones, and construction schedules will be evaluated to avoid disproportionate effects on riders who rely on these services for daily travel.
The proposed funding scenarios also reflect this commitment and prioritize projects that improve station accessibility, customer comfort, and safe connections and that offer meaningful benefits for communities who are most reliant on transit. Consistent with Board direction, Metro continues to coordinate with partner agencies through the GME and will support cities through technical assistance so that locally led projects can move forward. This assistance may include helping cities refine project scopes, develop cost estimates, and prepare competitive grant applications for state and federal funding. Metro can also provide technical guidance on design standards, environmental processes, and construction phasing to ensure project readiness and alignment with Games timelines. This collaborative approach ensures that investments made for the 2028 Games strengthens regional mobility and provide lasting improvements for residents throughout Los Angeles County.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
Vehicles Miles Traveled (VMT) and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
As part of these ongoing efforts, this item is expected to contribute to further reductions in VMT. This item supports Metro’s systemwide strategy to reduce VMT through investment, planning and operational activities that will improve and further encourage transit ridership, ridesharing, and active transportation including first/last mile investments, bus priority corridors, mobility hubs, and support for mobility wallets. Metro’s Board-adopted VMT reduction targets were designed to build on the success of existing investments, and this item aligns with those objectives.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The development of the MCP supports:
Strategic goal 1: Provide high-quality mobility options that enable people to spend less time traveling. Strategic Goal 2: Deliver outstanding trip experiences for all users of the transportation system. Strategic Goal 4: Transform LA County through regional collaboration and national leadership” by providing a roadmap and strategy to deliver permanent transit and transit-supportive projects and programs that can help serve the 2028 Games.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board could delay submission of the TIFIA LOI. This is not recommended as the TIFIA process requires 18-24 months or more and loans are provided on a first come-first served basis. Delaying submission of the TIFIA LOI will result in a delay in securing funding for construction of the Priority 1 projects, making delivery by 2028 impossible.
The Board could decide not to approve submitting the TIFIA LOI, or to reduce the list to only projects that could be fully funded through recommended grant awards. This is not recommended because, in the current market environment, access to the TIFIA Loan may provide Metro with a lower cost alternative to tax-exempt municipal bonds as well as more flexible financing terms. If the Board decided not to move ahead with some or all of the projects, this would increase the funding needed for temporary enhancements/treatments at key stations and mobility hubs which would disappear when the Games end. For service on the A and E lines, the risk of service disruptions during the Games would remain unmitigated, also potentially increasing the need for additional buses during Games times. This alternative is not recommended by staff given the importance of the 2028 Games and the unprecedented opportunity Metro has to develop these legacy investments.
If these projects are not funded, staff would include temporary enhancement/treatments at key stations and mobility hubs in the provisional priority list on future Board funding request associated with Games service delivery.
Next_Steps
NEXT STEPS
Staff will prepare and submit a TIFIA Letter of Interest for a subset of the projects on Priority 1 of the list and will keep the Board appraised of subsequent steps. Staff will also continue development of engineering plans for all projects on Priority 1 and for projects on Priority 2 that require advance development to stay on schedule for delivery by 2028.
Attachments
ATTACHMENTS
Attachment A - Revised Provisional Priority 1 Projects List
Attachment B - Priority Level 1 Local Funding Gap for TIFIA
Prepared_by
Prepared by: Meghna Khanna, Deputy Executive Officer, Countywide Planning & Development (213) 547- 4285
Michelle Quinn, Executive Officer, Program Management Office, (213) 922-3026
Ernesto Chaves, Senior Executive Officer, Office of Strategic Innovation, (213) 547- 4362
Reviewed_By
Reviewed by: Seleta Reynolds, Chief Innovation Officer, (213) 922-4656
