Minutes 01-24-2017 - Laserfiche WebLink

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12 identified for transit plans to be the funds that are used for transit plans. He said other revenues would not have to be found. Commissioner Price asked if the final cost of the project is known, since a loan is being added and financing pushed out. Danny Rogers said the cost is the same. He referred to a slide that overviewed the finances. He said the TIFIA loan would be paid off in 2062. Chair Dorosin asked if clarification could be given regarding the types of loans. Danny Rogers said TIFIA is a federal program that has been around for many years for major infrastructure projects. He said it allows for loans on very favorable terms. Commissioner Price said this proposal eliminates the gap but stretches out the financing to 2062. Danny Rogers said the TIFIA loan has always been a part of the plan. Commissioner Burroughs referred to the LOB, and said the gap is eliminated, but there is additional interest. She asked if the total of additional interest is known. Danny Rogers said the LOBs are short-term loans, which allows for cash flow while waiting for federal dollars to come in. He said this will actually be more efficient and less expensive. Commissioner Burroughs asked if the LOBs have better interest rates than the short- term cash flow financing. Danny Rogers said yes. Commissioner Burroughs referred to the base case, and asked if more clarification could be provided. Danny Rogers said everything that was promised in the plan will be provided, but the cost to complete it has increased. He said State and Federal funds are less than originally expected. Commissioner Burroughs referred to the wording that states it is being funded locally at a higher level, and asked if this information is broken out somewhere. Danny Rogers said that was part of the presentation in December. Commissioner McKee asked if the $3 billion mark will be hit. Danny Rogers said he is pretty sure this will not happen. Commissioner McKee said this project started off in 2011 using 2011 dollars and progressed a bit over time. He asked if$1.37 billion in 2011 dollars could be translated into the year of expenditure dollars at that time. Danny Rogers said the original project was a little over $1.8 billion. Commissioner McKee said the true increase in cost is from $1.8 to $2.476 billion. Danny Rogers said it is two different projects because additions were made. He said one addition is joint development, which is an optional program at about $130 million added to the project, to allow the opportunity to take advantage of a program that Federal Transportation Authority (FTA) has made eligible. He said if that program is not taken advantage of, then the cost does not occur. He said another $100 million is for the station at North Carolina Central University. He said the comparison is really $1.8 to $2.2 billion. He said there is additional cost of completing the project in 2026 instead of 2025. He said the 2011 plan did not include financing costs, but the 2016 plan does, as it is eligible for federal funding. He said the actual cost has only increased by 4%. Commissioner McKee said there are some very smart people working for GoTriangle, but he is concerned that some very significant information has not been included over the years. He said in very recent meetings it was presented that Orange and Durham counties would have to pick up the cost of the reduced funding from the State and Federal governments; but this evening the presentation is stating that no additional local funds are needed. He said he simply cannot understand this change. He asked if the rationale for