A $1.7 billion plan to build a light rail subway through downtown Dallas won city council approval, clearing the way for application for a federal transit grant.
The project, known as D2, would be built and financed by the Dallas Area Rapid Transit Authority with a local share of 50% expected to match a grant from the Federal Transit Authority.
DART’s board approved its 20-year financial plan in September. The D2 Subway could be in service by 2025.
The federal approval process, final project budget and grant share, and project delivery method may influence potential changes to the final revenue service date by one or more years, DART officials say. A final schedule will be developed over the year with the DART Board and FTA.
Although transit agencies nationwide were hard-hit by declining ridership in the pandemic, DART has continued expanding its rail system, which ranks as one of the largest in the nation.
Moody’s Investors Service retains a stable outlook on its senior most Aa2 rating, citing support from the district’s sales tax.
“The rating also reflects the dramatic declines in transit ridership though modest decline in pledged sales tax revenues caused by the current coronavirus epidemic,” Moody’s analyst Denise Rappmund wrote in a recent update.
“These declines will persist over the next year but, in our view, are unlikely to dramatically impact the long-term credit quality of the transit entity, given that sales tax revenue declines have been relatively minor, and the availability of additional federal and their assistance is expected.”
