Shearman & Sterling represented the U.S. Department of Transportation (USDOT) in connection with the extension of an approximately $658 million secured loan to the Central Puget Sound Regional Transit Authority (Sound Transit) to fund a portion of the Lynnwood Link Extension Project in Seattle, Washington. The loan, issued under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, will fund project costs for the light rail line extension, which will expand Sound Transit’s Link light rail service between Seattle and some of its most populated northern suburbs. The Lynnwood Link project includes 8.5 miles of grade-separated light rail, four new stations, 34 vehicles, 1500 parking spaces and a new maintenance and storage facility. Construction of the project is scheduled to begin in 2019 and be completed by 2024. Total project costs are estimated to be more than $3 billion.
Concurrently with the entry into the TIFIA loan, Sound Transit received additional federal support for the Lynnwood project through a $1.17 billion Full Funding Grant Agreement from the Federal Transit Administration (FTA), pursuant to which FTA committed to provide such funds to Sound Transit, subject to annual federal appropriation.