tag:blogger.com,1999:blog-5862444008740250372.post6262483582859119484..comments2024-02-01T04:37:41.878-05:00Comments on Cap'n Transit Rides Again: Public and private on the Goethals BridgeCap'n Transithttp://www.blogger.com/profile/17057887736728828646noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5862444008740250372.post-86846469565917210582010-05-20T16:22:50.903-04:002010-05-20T16:22:50.903-04:00The Port Authority is upset that they have to pay ...The Port Authority is upset that they have to pay a higher coupon. I read the RFI and I would not get involved unless I had 40 years to recover the money after the bridge is built. <br /><br />The only people that are lending money for these types of projects from the private sector are pension funds ad insurance companies and they need an 8-12% coupon.jazumahhttps://www.blogger.com/profile/00890764412679388559noreply@blogger.comtag:blogger.com,1999:blog-5862444008740250372.post-76658538586475088752010-05-19T23:12:06.831-04:002010-05-19T23:12:06.831-04:00I don't think it's acting like a responsib...I don't think it's acting like a responsible adult and saying "we can't borrow anymore," Citylights. The Port Authority is asking to borrow money - a billion dollars.<br /><br />It's acting more like an irresponsible adult who maxes out their credit cards and then carries a balance on a high-interest payday loan.<br /><br />The bridge is not going to be sold to the investors, and it's not going to be used as collateral. Read the RFP that I linked to in my post.Cap'n Transithttps://www.blogger.com/profile/17057887736728828646noreply@blogger.comtag:blogger.com,1999:blog-5862444008740250372.post-8996505124204577342010-05-19T10:46:29.106-04:002010-05-19T10:46:29.106-04:00I thought the money is always borrowed for such pr...I thought the money is always borrowed for such projects. Nobody ever has billions up front to build anything. The problem is not a lack of cash, but a lack of credit.<br /><br />What the PA is basically saying, PA credit is so bad that neither the government nor investors who buy public bonds would trust to give the PA more money. So the PA is going to hand over the collateral even before a potential default - the bridge is privately owned and reverts back to the owner if the lease with the PA is terminated for whatever reason.<br /><br />Basically, unlike the MTA, the PA is acting like a responsible adult by saying "we can't borrow anymore". I could only wish that the MTA would be allowed to (and have the will) to do that.CityLightshttps://www.blogger.com/profile/07877603807943730606noreply@blogger.com