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Deal Could Save City $10 Million on Murray Morgan Bridge
The City of Tacoma could end up saving millions of dollars on a $20 million loan that helped pay for the Murray Morgan Bridge project.
In 2010 the City Council authorized a $20 million no-interest loan from Washington State to cover a portion of the work on the rehabilitation of the bridge. The original terms of the loan would have it paid off over five years, with payments of $4 million annually beginning next year, and continuing through 2019.
The loan payments are accounted for in City budget forecasts, but the state has proposed a deal that would cut the amount of the loan in half, if Tacoma pays it off earlier than expected.
In an agreement worked out between the City and the State, if the City pays off $10 million beginning this year, and finishing up in 2016, the other $10 million would be forgiven.
Because the agreement would add an earlier payment in 2014, the City would need to dip into reserve funds to cover that payment. This initial payment of $4 million due on August 1 of this year would be followed by two $3 million payments, one in 2015, and the final one due April 1, 2016.
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