His basic plan, like many other government officials, is to borrow a lot now while rates are low. Unfortunately, the bond market will charge a premium for the grandiose as they have bad experience with it. The mayor would be better off backing his debt with transit and congestion fees, rather than the sales tax.
Nguyen touches on this theme twice in the article:
n the first half of the 20th century the Los Angeles region boasted an extensive system of streetcars and high-speed electric railways including the famed Red Cars. After World War II, Southern California began abandoning those systems in favor of personal automobiles and freeways, leaving mass transit to buses.
This is exactly the problem, much of the light rail will be uprooted and moved or removed. Neighborhoods change faster than the city can reroute light rail. I expect the Santa Clara light to be removed and replace with flexible BRT.
So, break the projects into smaller units and borrow money based on ridership income for the particular leg. The highest risk projects will pay a higher premium for money, and thus can be rejected. Otherwise the Mayor will bankrupt the city as bond investors see more and more risk with the grandiose.
Let's not forget that the LA governments are practically bankrupt as it is.
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