Brightline's private-activity bonds in peril, but Phase 2 construction nearing
Posted on May 4, 2018
By: Lisa Broadt, Treasure Coast Newspapers
The clock is ticking for Brightline to sell $1.15 billion of tax-exempt bonds for Phase 2 of its passenger railroad, but there's no evidence of a sale in sight.
Brightline has until May 31 to sell the private-activity bonds, according to a deadline set by the U.S. Department of Transportation when it approved the bonds Dec. 22.
In the past, the Department of Transportation has been lenient on deadlines: Two years ago, it allowed Brightline a 12-month deadline extension and then another six-month extension on a previous bond sale.
Now, though, Brightline and the Department of Transportation face new political pressure, including challenges from members of Congress over whether Brightline even is eligible for the federal financing…