The U.S. Department of Transportation Federal Transit Administration will grant the Greater Cleveland Regional Transit Authority (GCRTA) an extension to pay back a portion of a multimillion-dollar grant for a breach of contract.
The federal agency claims a breach of contract occurred when city officials closed Public Square resulting in buses not being able to go through.
The FTA wants the RTA to pay back $12 million. The money was a part of a $142 million grant to fund the construction of the Euclid Corridor. A portion of the initial grant was set aside for new construction, including downtown Cleveland and using bus lanes through Public Square.
In a letter from Robert Tuccillo, Associate Administrator/Chief Financial Officer for the Office of Budget and Policy for the FTA to Joseph Calabrese, CEO of the RTA, Tuccillo said they would give the RTA a one-time 30-day extension until Feb. 21.
Also in the letter, the FTA understands the GCRTA is continuing conversations with the City of Cleveland to restore bus traffic to Public Square. The FTA is giving the GCRTA two options: either reopen Public Square to bus traffic or reimburse RTA for the loss of the Federal investment.
Read the full letter here.