La. 1 debt refinanced, saving taxpayers

Taxpayers stand to save millions in interest costs on elevating La. Highway 1 thanks to a provision in the federal highway bill.

Refinancing the project will save $34 million in interest over a 32-year period once the $176 million debt-restructuring plan is in place.

The refinancing equates to more than $1 million in annual savings, according to Henri Boulet, executive director of the LA1 Coalition, a group of individuals and businesses formed to support and oversee the project.

“This is a really big deal for the project because with the refinancing,” he said. “it will allow the original toll schedule to remain in place.”

Unforeseen events, including the recent recession, challenged toll revenue projections for the construction project, Boulet said.

“The recession, combined with lower traffic counts due to the (Deepwater Horizon) oil spill in 2010, were pressing the traffic counts and, therefore, toll collections, downward. This refinancing helps to address those revenue issues,” he said.

Spearheaded by U.S. Sen. David Vitter, the refinancing will lower federal loan rates granted to the La. 1 project to as low as 1.89 percent. The provision – part of the highway bill – is specifically designed to aid rural road projects.

“Sen. Vitter’s leadership and push for this provision on behalf of the project was critical to its inclusion in the bill,” Boulet said.

While work on the elevated overpass over Bayou Lafourche and the connecting high rise to Port Fourchon is complete, design, technical and right-of-way work continues for the future 8-mile elevated segment from Leeville to Golden Meadow.