News Column

L.A. Metro Receives Agreements for Nearly $2 Billion in Federal Grants and Low-Interest Loans for Purple Line Extension Project

May 21, 2014



LOS ANGELES, May 21 -- The Los Angeles County Metropolitan Transportation Authority issued the following news release:

Marking an historic vote of confidence in Metro Rail subway construction in Los Angeles, the L.A. County Metropolitan Transportation Authority (Metro) today joined federal, state and local elected officials to announce the receipt of a $1.25 billion Full Funding Grant Agreement (FFGA) from the Federal Transit Administration to help pay for the first nearly four-mile, $2.821 billion segment of the long-awaited Metro Purple Line Extension Project toward West Los Angeles.

Additionally, the U.S. Department of Transportation simultaneously granted Metro a low-interest loan of $856 million from a Transportation Infrastructure Finance and Innovation Act (TIFIA) Loan to complete the funding package for the first phase of the project. Combined, the nearly $2 billion in project commitments represent the single biggest federal transportation investment in the history of Los Angeles County. The remaining $821 million in project funding includes Measure R, City of Los Angeles, and other existing local and federal funds.

"The federal commitment not only makes the subway extension to the Westside possible, it underscores the confidence of Washington in what we're doing here in Los Angeles on many fronts to deal with the nation's worst traffic congestion," said Metro Board Chair and Lakewood Councilmember Diane DuBois. "L.A. County is on the move. By the end of the year we'll have a record five rail lines concurrently under construction in Los Angeles County, funded in part with about $3.5 billion in federal grants and low-interest loans. That is an unprecedented federal commitment to expanding transportation infrastructure in the county, and we are overjoyed and grateful."

According to the Los Angeles County Economic Development Corporation, construction of the first phase of the Purple Line Extension will support over 25,000 jobs during its construction.

"Today's signing of the full funding grant agreement for the Purple Line Extension marks a great day for Los Angeles," said United States Senator Dianne Feinstein. "The project will connect the Westside to the region's growing rail network, making it possible to get downtown in just 25 minutes. Securing funds for this $2.8 billion project was a joint effort, bringing together stakeholders in Los Angeles, Sacramento and Washington. This cooperation will result in not only a vital alternative to L.A.'s busy freeways, but also the creation of more than 25,000 jobs and significant reductions in carbon emissions. This is a great example of what can be achieved when federal, state and local governments work together."

"The federal government's historic funding commitment is a huge down payment for better mobility in Los Angeles," said Los Angeles Mayor and Metro Board Vice Chair Eric Garcetti. "I want to thank our partners in Washington for helping make sure Los Angeles gets the funding it needs to build our transportation improvements and deliver on the promise of Measure R."

With federal funding commitments now in place, Metro will soon recommend the selection of a design-build contractor. Preliminary construction activities for the first segment of the project could begin later this year, with completion of the first subway segment anticipated in 2023. The new segment will add three new subway stations: Wilshire/La Brea, Wilshire/Fairfax and Wilshire/La Cienega.

The Purple Line Extension is a critically important, regionally beneficial transit project to extend L.A.'s subway further west from its terminus at Wilshire/Western in the Mid-Wilshire District. The project was overwhelmingly approved by two-thirds of L.A. County voters in 2008 as part of the Measure R transportation sales tax initiative.

"Our lives in West Los Angeles revolve around traffic. Where and when we travel is largely determined by traffic congestion patterns," said Zev Yaroslavsky, L.A. County Supervisor and Metro Board Member. "Extending the subway will offer commuters an alternative to driving through one of the most congested metropolitan street and highway systems in the nation. We can now see light at the end of the tunnel as the new subway will begin to serve the Wilshire corridor - one of the densest and most important commercial and residential sectors of our region."

"I am pleased to learn that the Department of Transportation has announced a Full Funding Grant Agreement for the Purple Line extension," said Congressman Henry Waxman. "This federal money will turn years of planning into a reality, linking Downtown to the Westside and LACMA, the La Brea Tar Pits, Restaurant Row, UCLA, and countless other sites. The Purple Line will be a critical transportation alternative, reducing traffic and congestion and when finished, will connect Westwood to Union Station in 25 minutes. This is an important step towards making this project a reality."

"The Metro Purple Line Extension project is a great accomplishment for Los Angeles," said U.S. Senator Barbara Boxer. "The TIFIA Program from MAP-21 provided key financing that enabled the project to move forward."

Current funding streams require the project to be built in three separate phases. When all phases are complete, the Purple Line will extend westward for nearly nine miles with a total of seven new stations. Future planned stations beyond the initial three include: Wilshire/Rodeo, Century City, Westwood/UCLA, and the Westwood/VA Hospital. Under this three-phase scenario, the total project is forecast to cost $6.3 billion. Measure R funds will pay for approximately three-fourths of the overall project cost. Metro is pursuing alternate funding scenarios that could accelerate subway construction.

"The 'Subway to the Sea' is about making Los Angeles work better, making it easier for Angelenos to get to work, and putting Angelenos to work," said Rep. Karen Bass (D-Calif). "This subway project is another investment that is building up our great city to connect Angelenos to where they live, work and play. It is expected to create over 25,000 jobs - a needed boost to our local economy, and Angelenos today and for generations to come will benefit from this important project."

The Purple Line Extension to the Westwood/VA Hospital station will generate about 49,300 daily weekday boardings at the seven new stations. Using a different measure, there will be about 78,000 new daily trips on the full Metro Rail System as a result of opening this line. During peak periods, trains are expected to run every four minutes. During off-peak periods, they are expected to run every 10 minutes.

"I am pleased to see that the Full Funding Grant Agreement for the Purple Line Subway Extenion in Los Angeles has been signed," said Speaker Emeritus John A. Perez. "This project will not only create vital activity in our economy, including nearly 26,000 jobs for the people of Los Angeles, it will further demonstrate our commitment to building a sustainable and healthy economy for every person in our city."

"Today we are moving forward with the next generation of transit for our next generation and together are transforming Los Angeles County," said Pam O'Connor, Santa Monica Mayor and Metro Board Member.

"This signing is the culmination of years of consensus-building on the Metro board to unanimously support the design and construction of both the Regional Connector and the Purple Line Extension," said Ara Najarian, Glendale City Council Member and Metro Board Member. "We would not be here today if the board wasn't pulling for these projects."

Over 300,000 people travel into the Westside every day for work from throughout the region. More than 100,000 trips leave the area for outside destinations. These numbers are expected to increase over time.

The Purple Line extension will offer improved connectivity to the entire Metro Bus and Rail network, as well as municipal bus lines and other regional transportation services.

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