U.S. Offers Funds for Eastside Metro Rail Project : Transportation: Pena commits millions to the proposed line, drawing praise from local Latino officials.

The proposed Metro Rail line to the Eastside got a two-pronged financial boost Friday from U.S. Transportation Secretary Federico Pena in a decision hailed as historic by local Latino officials.

At a news conference at Los Angeles City Hall, Pena announced the award of $275 million in Metro Rail funding and an agreement to eventually pay an additional $187 million for newly identified costs of the 3.8-mile Eastside extension of Metro Rail.

Of the $275 million awarded Friday, about $153 million will help fund the Eastside line, while the remaining money will go to complete the federal government’s financing obligations for the Hollywood line. Groundbreaking for the Eastside line is expected in mid-1996.

Los Angeles City Councilman Richard Alatorre, a member of the Metropolitan Transportation Authority governing board, said the Clinton Administration’s commitment to Metro Rail funding is a boon to Eastside residents who depend on mass transit and should serve as a catalyst for economic development in that heavily Latino part of the city.

Los Angeles County Supervisor Gloria Molina also hailed Pena’s announcement as a strong show of support for Los Angeles at a time when federal dollars are dear.

The total federal commitment to the $5.65-billion Metro Rail project is $3.17 billion, of which $1.65 billion has been received.

“It’s a win for Los Angeles,” said David Grannis, a transit consultant. “It keeps the money coming to us at a time when federal funding is very uncertain for capital projects.”

Pena also affirmed his confidence in the MTA’s ability to build the Metro Rail system safely and efficiently.

Last year, federal funding for the system was halted for five weeks amid concerns that tunneling in Hollywood was damaging streets and buildings. But the MTA’s management reforms and heightened monitoring of drilling operations have assuaged his concerns and paved the way for funding to resume, Pena said.