For Immediate Release
October 30, 2020
MST APPROVED FOR UP TO $8.45 MILLION LOAN FROM U.S. DEPARTMENT OF TRANSPORTATION (dot) UNDER TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT (tIFIA) TO BUILD SOUTH COUNTY OPERATIONS AND MAINTENANCE FACILITY
On October 29th, MST closed on a loan for up to $8.45 million with the U.S. Department of Transportation (DOT) under the Transportation Infrastructure Finance and Innovation Act (TIFIA) Rural Project Initiative (RPI). This is only the second loan approved under the TIFIA RPI. The DOT provides TIFIA RPI and other surface transportation infrastructure financing through its Build America Bureau.
The special loan features a no-fee, 35-year fixed interest rate equal to one half of the U.S. Treasury rate, or 0.78%, that will help finance the construction of a new South County Operations and Maintenance Facility in King City, California. The 14,000 square-foot facility will provide MST with a base in south Monterey County from which to operate its south county services, reducing deadhead mileage, fuel usage, maintenance and labor costs, and risk of mechanical issues. There is currently no storage, parking or operation and maintenance facility in southern Monterey County. A ground-breaking ceremony was held for the facility on July 10th and completion is expected in the fall of 2021.
MST CEO/General Manager, Carl Sedoryk stated, “This loan was critical to completing the financing needed to finish construction and we worked collaboratively with our colleagues at the Build America Bureau to close this loan in record time.”
“Accessible and affordable public transportation is vital for our way of life on the Central Coast. That’s why it’s important that our transportation agencies have access to capital for the resources necessary to adequately and safely operate in our many cities,” said Congressman Panetta. “This TIFIA loan will help MST with its operations throughout the Salinas Valley and further allow it to fulfill its goal of providing quality transportation services to everybody in every one of our communities.”
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