UTA approves FrontLines bonds

OREM — The Utah Transit Authority Board of Trustees approved Wednesday the issuing of $306 million in bonds to pay for the FrontLines 2015 program, in which UTA aims to build 70 miles of light and commuter rail in Salt Lake and Utah counties.

UTA plans to repay the bonds in 30 years with sales tax. Under the law, the public is invited to sound off about the bonds at a hearing on April 8 at 2 p.m. at the UTA FrontLines center, 669 W. 200 South. UTA staff and financial underwriters intend to publicize the bond sale and sell the bonds, probably some time during the third or fourth week of April, depending on interest rates, said Ken Montague, UTA chief financial officer.

Once purchasers are found with a favorable interest rate, the UTA board must again approve the sale, Montague said.

UTA will use the $306 million as needed, "depending on the construction process and who really needs the money most," he said. "Right now, the three projects moving forward fastest are (FrontRunner) South, the mid-Jordan line and the West Valley Line."

TRAX to the Salt Lake City International Airport and in Draper are not as far along, he said.

All trustees approved Wednesday's vote except for Orrin Colby Jr. and Dama Barbour, who both abstained. Colby said he didn't know enough about the issue to vote. Barbour is a new board member and said she was surprised by the amount of money and didn't have enough information to vote.

It is the second bond issuance for UTA. The first was for $700 million. Some of it paid off FrontRunner commuter rail between Salt Lake and Davis counties. The rest of it paid for construction of commuter rail to Utah County, and the mid-Jordan and West Valley City lines of TRAX.

E-MAIL: lhancock@desnews.com