A major financier of Washington D.C.'s Metro system has agreed to give the transit system an extra 10 days to collect more than $40 million from the troubled system, complying with a judge's ruling that forcing Metro to pay could cause great harm.
"Without the extra time, Metro could have found itself in default by today, allowing KBC Group of Belgium to immediately collect $17 million from the agency Monday, according to an attorney for KBC in court yesterday."
"U.S. District Judge Rosemary M. Collyer said she agreed with Metro's contention that if KBC prevailed, other banks might be prompted to demand millions in payments in similarly troubled financing deals at Metro and other transit agencies across the country, posing 'very real' harm to riders. Although there is public interest in enforcing contracts, Collyer said, there is also public interest 'in not putting at terrible risk the transit system.'"
"KBC's demand was triggered by the collapse of American International Group, the insurance giant that U.S. taxpayers recently rescued from bankruptcy. AIG had guaranteed Metro's financial deals with the bank, but AIG's financial problems, specifically the downgrading of its credit rating, invalidated the company's guarantees, putting the deals in technical default and allowing the bank to ask for all its money at once."
"Metro has 14 other financing deals with banks that could go into default. Officials said it would cost $50 million to $100 million to purchase the additional insurance to replace AIG as guarantor."
FULL STORY: Bank Shelves Demand That Metro Pay Up
Cash-Free Transit: Convenient or Unjust?
Washington, D.C.'s Metro is trying a cashless bus pilot that will last until December.
D.C. Metro Approves Fare Hike, Service Cuts
For months, transit advocates have dreaded the decision to raise fares and cut service throughout the D.C. Metro system. That day arrived last week. Changes take effect on July 1.
D.C. Metro's Proposed Service Cuts Would Disproportionately Affect Communities of Color
Planning and urbanism writers in Washington, D.C. agree that a proposal to cut service to 20 stations in the Metrorail system would have harmful effects for minorities in the region.
Trump Administration Could Effectively End Housing Voucher Program
Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
Ken Jennings Launches Transit Web Series
The Jeopardy champ wants you to ride public transit.
Texas Bills Could Push More People Into Homelessness
A proposal to speed up the eviction process and a bill that would accelerate enforcement of an existing camping ban could make the state’s homelessness crisis worse, advocates say.
USGS Water Science Centers Targeted for Closure
If their work is suspended, states could lose a valuable resource for monitoring, understanding, and managing water resources.
Driving Equity and Clean Air: California Invests in Greener School Transportation
California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Heyer Gruel & Associates PA
Ada County Highway District
Institute for Housing and Urban Development Studies (IHS)
City of Grandview
Harvard GSD Executive Education
Toledo-Lucas County Plan Commissions
Salt Lake City
NYU Wagner Graduate School of Public Service