Crenshaw Project Corporation
One Gateway Plaza
Los Angeles, CA 90012
CRENSHAW PROJECT CORPORATION BOARD MEETING
DECEMBER 6, 2018
Subject
SUBJECT: CRENSHAW PROJECT CORPORATION ANNUAL FINANCIAL REPORT
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the Crenshaw Project Corporation (CPC) Annual Financial Report for the fiscal year ended June 30, 2018 (see Attachment A).
Issue
ISSUE
The CPC was formed on March 23, 2012 to act as the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan conduit borrower for the Crenshaw/LAX Transit Corridor Project (Crenshaw/LAX Project). The CPC bylaws require that an annual financial report be prepared for review by the CPC Directors no later than 120 days after the close of the CPC’s fiscal year (June 30), or such later date permissible by Public Benefit Corporation Law. Attachment A presents this required financial report.
Discussion
DISCUSSION
In September 2012, the CPC secured a $545.9 million TIFIA loan from the United States Department of Transportation (USDOT). The TIFIA loan is secured by Measure R sales tax revenues allocated to the Crenshaw/LAX Project. As of June 30, 2018, USDOT has disbursed the maximum amount of $545.9 in TIFIA loan funds. All loan disbursements were advanced to Metro for the purpose of reimbursing the agency for eligible Crenshaw/LAX Project expenses. In addition, during FY18 the CPC paid $23,397 in expenses that consisted of loan fees and other charges. The CPC was reimbursed for these expenditures by Metro. The Annual Financial Report states that the net position of the CPC as of June 30, 2018 was $0. Total assets of $580.7 million represent advances to Metro and the total liabilities represent the note payable to USDOT. Attachment A contains the CPC Audited Financial Statements for the fiscal year ended June 30, 2018.
Financial Impact
FINANCIAL IMPACT
The administrative costs associated with preparing the CPC annual financial report was funded in Metro’s adopted FY19 budget in various cost centers.
Next Steps
NEXT STEPS
Staff will continue to provide CPC financial reports to the Board on an annual basis as required by the bylaws.
Attachments
ATTACHMENTS
Attachment A: Crenshaw Project Corporation Financial Statements for the Fiscal Year Ended June 30, 2018
Prepared_by
Prepared by: Jesse Soto, Executive Officer, Finance, (213) 922-6861
Reviewed_By
Reviewed By: Nalini Ahuja, Chief Financial Officer, (213) 922-3088
