From: Tim Heider, Clackamas County Public Affairs Manager, (503) 742-5911 09-14-12

Clackamas County

Media and Interested Parties

Clackamas County completes financing for Portland-Milwaukie Light Rail project

Clackamas County has successfully obtained financing to fund its $19.9 million obligation to the Portland-Milwaukie Light Rail project. The financing was obtained through Bank of America at a historically low interest rate of 2.74%.  The loan will be amortized over 20 years, with a balloon payment in 15 years. The terms of the loan agreement are almost identical to those that would have been realized by a bond sale.

The Board of County Commissioners authorized payment Aug. 22 after approving a re-negotiated agreement with TriMet that reduced the County’s obligation from $25 million. In return, TriMet agreed to concessions improving public safety and aesthetic changes to the project.

The Aug. 22 Board Order directed staff to implement financing through either bonding or a commercial bank loan.  The agreement reduced the County’s cash contribution by $5 million through a combination of in-kind contributions and monetary concessions by TriMet.