AAF DOWNSIZES BOND FINANCING PLAN

Publish Date: 
Monday, November 7, 2016 - 10:45am

 

All Aboard Florida’s Brightline has renewed its push to sell millions in tax-exempt bonds to help pay for its proposed passenger train service connecting South Florida to Orlando.

The Coral Gables-based company first sought permission to sell $1.75 billion in tax-exempt bonds in 2014, but the tight municipal bond market forced officials to shelve the sale last year.

In court documents made public Tuesday, All Aboard officials said they want to scrap the original sale, and instead move forward with a smaller bond issue that would be easier to market to potential buyers.

The request is drawing fire from Treasure Coast officials, who filed suit last year to block the original $1.75 billion bond sale.

Martin County officials on Tuesday filed court documents urging a judge to move forward with the suit, saying the All Aboard’s funding shift was designed to avoid a “judicial determination” in the case.

In court documents, federal officials have argued the bond change would render the lawsuit moot.

A spokeswoman for All Aboard Florida declined to comment Tuesday, citing the “active litigation.”

Court documents show All Aboard filed an application with the U.S. Department of Transportation in September requesting permission to move forward with a smaller, $600 million bond sale. The company said it planned to use the money to help pay for the first leg of its project connecting West Palm Beach and Miami.

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