By Arnie Rosenberg: All Aboard Florida has received millions of dollars from the federal government in the past three years, an investigation by Scripps Treasure Coast Newspapers has found.
That “financial assistance” contradicts All Aboard Florida’s contention that the $2.25 billion railroad would be entirely private.
The federal money went to improve grade crossings and to upgrade the rail corridor for All Aboard Florida’s passenger service as well as for an increase in freight traffic, the investigation found. The federal funds were paid through the Florida Department of Transportation to Florida East Coast Railway, All Aboard Florida’s sister company and the freight line that would share the rail corridor.
In a federal document Scripps Treasure Coast Newspapers obtained, All Aboard Florida said it expects to continue receiving the federal money.
Receiving financial assistance from the federal government flies in the face of All Aboard Florida’s core marketing philosophy, that it would be the country’s first privately owned, operated and maintained passenger rail system. From its public unveiling in March 2012, All Aboard Florida has insisted it would accept no government payments, grants or subsidies.
Yet in an Aug. 15 filing with the U.S. Department of Transportation, seeking authority to issue tax-exempt bonds to fund the project, All Aboard Florida explains receiving the federal money and how it was used.
“The Project has already received financial assistance under Title 23 of the U.S. Code,” All Aboard Florida says in its application, signed by company President P. Michael Reininger. “The planning process for All Aboard Florida started in December 2011. Since then, approximately $9.3 million in funds from Section 130 of U.S. Code Title 23 has been invested in the corridor to improve railway-highway grade crossings and to prepare the corridor for growth in rail traffic, including the introduction of passenger service. Future investments from the Section 130 program are planned for future calendar years.”
In a prepared statement, however, All Aboard Florida denied receiving the funds.
“All Aboard Florida has not directly or indirectly received federal funds,” the company said in its statement, provided Wednesday to Scripps Treasure Coast Newspapers. All Aboard Florida would not comment further.
Read the story online:
http://www.tcpalm.com/franchise/shaping-our-future/all-aboard-florida-received-federal-financial-assistance-investigation-finds_44474757