Brightline wins seven-month extension for tax-exempt bond issue

The U.S. Department of Transportation extended the deadline for a $1.15 billion bond issue to finance Brightline's expansion to Orlando

Miami /
Jun.June 02, 2018 09:00 AM

Brightline arrives at MiamiCentral Station (Credit: Charles Trainor Jr./ Miami Herald)

Brightline got  seven-month extension from the U.S. Department of Transportation (DOT) to issue more than $1 billion in tax-exempt bonds to finance the passenger train operator’s expansion to Orlando.

Brightline began operating between West Palm Beach and Fort Lauderdale in January and expanded its service to Miami in May.

The company plans to start carrying passengers between South Florida and Orlando International Airport in 2021.

The DOT had authorized Brightline to issue $1.15 billion of private activity bonds by May 31.

But after Brightline requested more time, the DOT extended the deadline for the $1.15 billion bond issue until Dec. 31.

The extended deadline disappointed critics who questioned the propriety of tax-exempt financing for a private passenger train service.

Five congressmen had asked DOT officials to suspend their approval of the $1.15 billion bond issue.

One of the critics, U.S. Representative Brian Mast, R-Palm City, said Brightline’s request for more time to issue the bonds shows that Brightline’s private business is dependent on public subsidies.

Brightline already has issued $600 million in tax-exempt bonds to finance the development of its South Florida service.

While working on the bond issue, Brightline also is applying for $1.75 billion in federal financing for its expansion to Orlando in the form of a Railroad Rehabilitation & Improvement Financing loan. [Palm Beach Post] – Mike Seemuth


Related Articles

arrow_forward_ios
Inventing Nora: Developers eye new district in West Palm Beach
Inventing Nora: Developers eye new district in West Palm Beach
Inventing Nora: Developers eye new district in West Palm Beach
Harbor Group International's Jordan Slone and Richard Litton with ParkLine Miami (Harbor Group International, ParkLine)
Harbor pays over $400M for MiamiCentral apartments in record deal
Harbor pays over $400M for MiamiCentral apartments in record deal
(Google Maps, iStock)
Miami investor Enrique Manhard scoops up MiMo District land for $8M
Miami investor Enrique Manhard scoops up MiMo District land for $8M
The "Jumanji" house at 9291 Point Cypress Drive in Orlando (Saunders Ralston Dantzler Real Estate, iStock)
“Jumanji” house in Orlando lists for $25M
“Jumanji” house in Orlando lists for $25M
From left: Charles Kushner, Wes Powell, Nicole Kushner Meyer and Laurent Morali with a rendering of the planned development (Kushner, Stantec, ODA Architecture, iStock)
Multifamily giants Kushner and Aimco acquire site of Fort Lauderdale mega project
Multifamily giants Kushner and Aimco acquire site of Fort Lauderdale mega project
Ram Realty, Pinnacle pay $15M for multifamily dev site near Aventura
Ram Realty, Pinnacle pay $15M for multifamily dev site near Aventura
Ram Realty, Pinnacle pay $15M for multifamily dev site near Aventura
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
From left: The Real Deal editor-in-chief Stuart Elliott, Miami-Dade County Mayor Daniella Levine Cava, City of West Palm Beach Mayor Keith James, City of Boca Raton Mayor Scott Singer, City of Miami Mayor Francis X. Suarez and City of Fort Lauderdale Mayor Dean Trantalis
“We’re crushing it, and we’re going to continue crushing it.” South Florida mayors talk growth at TRD Miami event
“We’re crushing it, and we’re going to continue crushing it.” South Florida mayors talk growth at TRD Miami event
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...