Posts Tagged ‘Brightline West’

Brightline West Projects Hits Another Snag

July 8, 2021

Brightline service between Las Vegas and Southern California has encountered another delay.

Brightline West recently said it will not issue private activity bonds to fund development of the service until next year.

The company had earlier said it planned launch construction this year of a high-speed rail line between Las Vegas and Victorville, California.

A Brightline spokesman attributed the delays to the COVID-19 pandemic slowing the planning of the proposed Rancho Cucamonga, California, station. The latter will enable Brightline passengers to connect with Metrolink trains to Los Angeles.

The private activity bonds from Nevada would total $200 million and Brightline is seeking $600 million in private activity bonds from California.

Under IRS guidelines the bonds could marketed for up to four times those amounts.

In a related development, Brightline said this week it has has purchased 110 acres at the south end of the Las Vegas strip for station.

Brightline said it is developing plans for a 65,000-square foot station on the site, which will also include parking and connections to existing and planned ground transportation systems.

Brightline West Expects Work to Begin in 2nd Quarter

April 15, 2021

Brightline West said it is on schedule to begin construction of a high-speed intercity rail line between Las Vegas and Southern California.

It said work would begin in the second quarter of this year but did not specify a date for when construction of the 170-mile line between Las Vegas and Victorville, California, would get underway.

“The world changed as a result of the pandemic, but we continued to work wherever we possibly could toward advancing the ball,” said Brightline West CEO Mike Reininger. “The project remains a very high priority for us.”

The effects of the pandemic on the project were described in a letter sent in January by Brightline to the Nevada High-Speed Rail Authority. One of those was obtaining funding for the project.

In a related development Brightline West has asked the U.S. Surface Transportation Board for an exemption from certain regulatory requirements in order to construct and operate an extended 50-mile high-speed rail line between Victor Valley and Rancho Cucamonga, California.

That proposed line would extend the a previously approved Las Vegas-to-Victorville line..

Brightline West Expect to Begin Construction in Spring

January 15, 2021

Brightline West expects to begin construction of its high-speed rail route between Las Vegas and Southern California this spring.

The company disclosed the plan in a filing with the Nevada High-Speed Rail Authority.

Sarah Watterson, president of Brightline West, said in the filing that the project is “on target” to launch in the second quarter of 2021.

Brightline’s filing also indicated that it will make another attempt to sell private activity bonds that it is depending upon to fund the project.

An effort to sell $2.4 billion in bonds last November was canceled. At the time the company blamed an unfavorable market for calling off the sale.

Lack of Interest Thwarts Bond Sale

November 7, 2020

Lack of interest has thwarted for now the plans of Fortress Investment Group to sell bonds to support its $8.4 billion Brightline West high speed rail project connecting Las Vegas and Southern California.

Fortress was facing a Dec. 1 deadline imposed by the state of California to sell the bonds but it now plans to take back the bond capacity and instead use it on affordable housing projects and other kinds of qualifying ventures.

A Brightline spokesman said the plans to develop the route will still move forward but will result in shifting the funding goals until the market improves.

Fortress had been offering $3.2 billion in bonds issued through California and Nevada agencies.