All Aboard Florida’s Financing in Jeopardy

Indian River County has taken legal action which could result in a major strike against All Aboard Florida in the financing department.

Written by Lisa Broadt, tcpalm.com shutterstock_214028590
Link to story online:
http://www.tcpalm.com/story/news/local/shaping-our-future/all-aboard-florida/2016/10/21/all-aboard-floridas-financing-jeopardy-according-court-documents/92516274/

A major strike against All Aboard Florida — one that would rescind $1.75 billion of tax-exempt bonds — has been initiated by Indian River County in legal action filed Friday.

For 1½ years, both Indian River and Martin counties have argued that issuing the private-activity bonds before a final environmental report was completed violated federal law.

In August, a federal court judge said the counties’ case against the U.S. Department of Transportation and All Aboard Florida had merit, and on Friday, the counties asked the court to nullify financing for the $3.1 billion passenger railroad.

The court’s decision could determine whether Brightline passenger trains run only between Miami to West Palm Beach, or if service eventually continues through the Treasure Coast and on to Orlando International Airport.

Now — before All Aboard Florida can sell the bonds and begin work on the second phase of the railroad — is the time for the court to take action, according to Indian River County.

“This is not a case where the ‘egg has already been scrambled,'” the county said in court documents filed in U.S. District Court, District of Columbia.