Florida train developer may switch tracks on federal financing

By: Shelly Sigo, The Bond Buyer

BRADENTON, Fla. - The private company preparing to offer new passenger rail service in Florida appears to hedging its bets on whether to use private activity bonds to finance the project.

All Aboard Florida and its parent company, Florida East Coast Industries, inquired in recent months about obtaining a low-interest loan to finance its Brightline-branded train service from the U.S. Department of Transportation’s Federal Railroad Administration, according to correspondence obtained by The Bond Buyer.

“As a follow-up to our call today, I write to advise you of All Aboard Florida-Operations LLC’s intention to submit promptly an application for a Railroad Rehabilitation and Improvement Financing loan,” Brightline Chief Executive Officer Dave Howard wrote in an April 11 letter to Roger Bohnert, deputy executive director of USDOT’s Build America Bureau…