Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
SEPTEMBER 15, 2021
Subject
SUBJECT: ALAMEDA CORRIDOR-EAST (ACE) PROJECT MEASURE R WORKING CAPITAL LOAN RESTRUCTURING
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO) or their designee to negotiate and execute a project amendment to the ACE Measure R Master Funding Agreement which will restructure the associated working capital loan by extending the loan term an additional three years and restructure the loan maturity terms to allow for adjustment based on a percentage of the outstanding loan balance, thereby allowing for additional pre-payments.
Issue
ISSUE
Metro and the San Gabriel Valley Council of Governments (SGVCOG) entered into a Measure R Master Funding Agreement on June 14, 2013. The Master Funding Agreement included a working capital loan in the amount of $45,000,000. The SGVCOG has partially repaid $15,000,000 toward the working capital loan, which was granted under a Measure R Master Funding Agreement with Metro. The SGVCOG has requested a restructuring of the loan terms and conditions (Attachment A) as Metro continues to support the delivery of the Alameda Corridor-East Grade Separation Phase II projects (ACE Project).
Under the existing agreement, payment of the outstanding balance of the working capital loan is due on the earlier of ten years (the "Initial Term") or the date in which Metro's outstanding Measure R fund obligation falls below $75,000,000 (the "Early Trigger"). Based on a partial repayment of $15,000,000 out of the total original loan amount of $45,000,000, staff recommends extending the Initial Term by three additional years and adjusting the Early Trigger to reflect the $15,000,000 partial payment and any additional future principal payment. The Early Trigger will be equal to five-thirds (5/3) of the current outstanding loan balance.
Background
BACKGROUND
The SGVCOG established the Alameda Cor...
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