Metro - File #: 2026-0459

• File #: 2026-0459
• Type: Informational Report
• Status: Agenda Ready
• File created: 6/4/2026
• In control: Executive Management Committee
• On agenda: 10/15/2026
• Title: RECEIVE AND FILE status report on the Innovative Financing Strategy Plan, including Public-Private Partnerships (P3).
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Alignment, Budgeting, Bus rapid transit, Capital Project, Capital Project Funds, Center for Transportation Excellence, Construction, Contractors, Design build, Evaluation and assessment, Gateway Cities (Southeast LA County) Service Sector, Gateway Cities subregion, Gold Line Eastside Transit Corridor Phase 2, Governance, Informational Report, Los Angeles Union Station, Memorandum Of Understanding, Metro Rail A Line, Metro Rail E Line, Metro Rail K Line, Motion / Motion Response, Operations and Maintenance, Plan, Pre-Development Agreement, Procurement, Project delivery, Public private partnerships, Request For Proposal, South Bay Cities subregion, South Bay Service Sector, Southeast Gateway Line, Strategic planning, Testing, Torrance, Transit Oriented Development, Whittier

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
OCTOBER 15, 2026

Subject
SUBJECT: INNOVATIVE FINANCING STRATEGY AND IMPLEMENTATION ROADMAP PLAN

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE status report on the Innovative Financing Strategy Plan, including Public-Private Partnerships (P3).

Issue
ISSUE

At its March 2026 meeting, the Board approved Motion 26 by Directors Dutra, Sandoval, Najarian, Horvath, Yaroslavsky, and Dupont-Walker (Attachment A), which directed the Chief Executive Officer to return to the Board with a comprehensive P3 and Innovative Financing Strategy and Implementation Roadmap Plan. This report provides an update on the early work that is underway, outlining foundational activities planned that will shape the approach to innovative financing over the next several years.

Background
BACKGROUND

According to the U.S. Department of Transportation (USDOT), innovative financing encompasses techniques and mechanisms that go beyond conventional grant-based or pay-as-you-go funding, allowing transportation agencies to leverage resources, borrow funds, or generate new revenue streams to support infrastructure projects. Common mechanisms include, but are not limited to, P3 and value capture. The benefits of innovative financing include:
Leverages existing funding to maximize impact;
Accelerates project delivery, reducing delays and inflation-related cost increases; and
Supports sustainable and equitable transportation

Metro’s exploration of P3 as an opportunity for major infrastructure projects is not new, but prior attempts have not been successful; the upcoming effort will build on lessons learned from those experiences. Metro performed P3 assessments in the mid-2010s that considered a comparison between traditional Design-Build models vs. full Design Build Finance (DBF) and Design Build Finance Operate Maintain (DBFOM) delivery models. In 2017, those initial P3 assessments, along with Unsolicited Propos...