Quote:
Originally Posted by wierdaaron
Are USDOT loans even expected to be paid back? I picture them being more like grants.
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Of course. That's why they're
loans. Many TIFIA projects are toll roads, which generate lots of revenue to pay back the loan. The interest rate on the Riverwalk loan is only 3.33% on a 35-year schedule, which is (IIRC) less than what the city could get by selling bonds and less than what a P3 investor would demand, so it's an attractive way to finance any kind of transportation project.
As far as I can tell, the city plans to pay the debt to the Feds using gas tax proceeds. Rent from tenant businesses might reduce that a little bit but they're still just a drop in the bucket.