Industries

WASHINGTON — The trustee for millions of dollars of toll revenue bonds issued in 1998 to finance South Carolina’s first publicly owned and privately built toll road, the Southern Connector Project, is warning investors that the bonds will probably default on Jan. 1, 2010, because of insufficient revenue.

The Metropolitan Transportation Authority’s $28.08 billion five year-capital plan is unaffordable, New York Gov. David Paterson said yesterday, adding that the State Department of Transportation’s $25.8 billion five-year plan is too costly as well.

WASHINGTON — Groups representing student loan bond issuers, port authorities, and airports are asking Congress to permanently exempt private-activity bonds from the alternative minimum tax and allow all current PABs to be refinanced to obtain the exemption

CHICAGO — Chicago expects to tap an array of federal stimulus debt programs in its sales of up to $2.85 billion of new-money and refunding general obligation and airport bonds that were submitted to the City Council for approval yesterday, chief financial officer Gene Saffold said.

The National Governors Association adopted a policy opposing federal restrictions on public-private partnerships after a multiyear transportation authorization bill introduced in the House proposed creating a federal office to oversee see P3s on highways that receive federal aid.

BRADENTON, Fla. — Transportation Secretary Ray LaHood has been making the rounds across the country, telling those vying for $8 billion in federal stimulus funds for high-speed and intercity rail projects that united public and official support — and state funding — are key elements for successful applicants.

Louisiana has opted for binding arbitration to resolve its dispute over the replacement value for Charity Hospital in New Orleans, wich was severely damaged by Hurricane Katrina in 2005.

Atlanta Mayor Shirley Franklin said Monday that she has recommended the City Council approve legislation that would extend the lease between Hartsfield-Jackson International Airport and Delta Air Lines covering gates and other space for seven years, ensuring that the world’s busiest airport does not lose its largest hub airline.

The Birmingham City Council on Tuesday approved an ordinance extending the city’s lease with the Birmingham Airport Authority giving it nine more years to operate Birmingham-Shuttlesworth International Airport and allowing it to issue debt for improvements.

CHICAGO — Froedtert & Community Health Inc. enters the market today to issue $187 million of revenue bonds to restructure some remaining insured auction-rate securities and variable-rate demand bonds and raise new money for various projects.

SAN FRANCISCO — The Los Angeles World Airports Board of Directors on Monday agreed to a $75 million settlement with bondholders in a seven-year-old dispute over United Airlines special facilities revenue bonds sold to make improvements at Los Angeles International Airport.

Standard & Poor’s downgraded $23 million of bonds issued for Clark Retirement Community Inc. by the Michigan Strategic Fund to BBB-minus and revised its outlook to negative.

Standard & Poor’s revised its outlook to negative from stable on debt issued for Memorial Health System in South Bend.

Scott County voters have approved $24 million of bonds to build a new 24-bed hospital in Scott City to replace a 56-year-old facility.

CHICAGO — Underwriters interested in working on Chicago Transit Authority bond sales over the next two years have until Oct. 13 to submit their qualifications for review.

The Port Authority of New York and New Jersey last week announced that Susan Baer will serve as director of aviation, overseeing the John F. Kennedy, Newark Liberty, and LaGuardia airports.

TRENTON, N.J. - The three gubernatorial candidates in New Jersey addressed budget deficits, tax hikes, and ways to replenish the state’s Transportation Trust Fund, which will run out of funding in fiscal 2012, during their first debate Thursday evening in Trenton.

LOS ANGELES — Public-private partnerships may or may not be the way to finance transportation infrastructure in California, according to the mixed opinions of panelists at a symposium here this week, but it’s pretty clear that the state’s general fund can’t do much more.

A recently priced bond issue for a Honolulu senior-living facility is the first startup continuing care retirement community financing in more than 18 months, underwriter Ziegler Capital Markets said in a news release.

DALLAS — A passenger rail line expected to begin in Juarez, Mexico, could cross the international boundary into El Paso, Tex., under a plan the sister cities are considering.