Mayfield to Scott: Hold AAF Financing Back While Congress Assesses Its Legality
Posted on April 26, 2018
By: Nancy Smith, Sunshine State News
Sen. Debbie Mayfield, R-Melbourne, has asked Gov. Rick Scott to call a 90-day moratorium on the involvement of Florida Development Finance Corporation (FDFC) and any of its affiliates in the financing of All Aboard Florida/Brightline because members of Congress are weighing its legality.
In a letter to Scott on Wednesday, Mayfield in essence said the continued use of taxpayer-subsidized funding may not wash at the Capitol. The U.S. House Oversight and Government Reform Subcommittee on Government Operations, she said, now is questioning whether private activity bonds (PABs) should be used to finance the passenger rail project.
Wrote Mayfield, "I am respectfully requesting you to take immediate action and direct the Florida Development Finance Corporation to not act as a conduit for AAF, or any of its affiliates, for the next ninety (90) days while this issue is being discussed and analyzed by Congress. Your action will not only protect the credibility of the FDFC but also the reputation of the State of Florida."
FDFC has been facilitating the issuance of those bonds between the U.S. Department of Transportation and the rail project's backers. AAF recently received two PAB allocations, $600,000 for Phase I and $1.15 billion for Phase II of the proposed Miami-to-Orlando passenger project….