DALLAS -- Mesa, Ariz.'s plan to build a 1.9-mile light-rail extension using $200 million of revenue bonds does not require a public vote, a Maricopa County Superior Court judge has ruled.
In the April 1 ruling, Judge David Udall rejected a lawsuit filed by the owner of a used car lot on the proposed route. The car lot owner, Joe Price, maintained in a March 6 hearing that the funding measure required a public vote. Attorneys for Price have not said whether they would appeal the decision.
The Phoenix suburb plans to use Transit Project Advancement Notes that were approved by the Arizona Legislature in 2012. The law authorizing the notes specifies that they "are not general obligations of a political subdivision" and that they are to be paid from transportation funds or "other monies lawfully available for application to that purpose," according to the court.
Mesa has used the notes in the past to accelerate work on a state highway project. City officials said the notes allowed savings on future construction costs.
Mesa and Valley Metro Light Rail are building an extension on Main Street in Mesa, using federal grants and revenues from the Proposition 400 regional transportation tax that was extended for 20 years in a 2004 vote. The sales tax for highway and transportation projects was originally approved in 1985.
In its application for federal grants, Mesa cited the need to redevelop "brownfield" sites along the proposed light rail route where automotive shops have prompted the need for environmental remediation. The city plans to begin construction of the rail extension in 2015.
Mesa's population of 439,041 people makes it the third largest city in Arizona, behind Phoenix and Tucson. Under the aegis of Valley Metro Light Rail, each city along the rail line provides its own financing for the transit system.
With $290 million of outstanding general obligation debt, Mesa carries ratings of Aa2 by Moody's Investors Service and AA by Standard & Poor's. Outlooks are stable.
