Brightline back on track for Orlando rail extension – for now.
DECEMBER 28, 2018 11:20 AM
Florida’s fledgling private passenger-rail service has had some reason for holiday cheer.
Days after Brightline got an extra six months to issue $1.15 billion in tax-exempt bonds needed to expand the service from South Florida to Orlando, U.S. District Judge Christopher Cooper on Monday tossed a lawsuit by Indian River County that sought to block the “private activity” bonds.
Brightline spokeswoman Ali Soule called Cooper’s ruling “well-reasoned.”
“The court’s decision adds momentum to our efforts of connecting Orlando to South Florida. We remain focused on exploring locations for a Brightline station in the Treasure Coast and are encouraged by the tremendous amounts of support we have received in the region,” Soule said.
The rail service has now prevailed in 10 rulings in cases initiated by Treasure Coast counties as it looks to put down a second track along a 128.5-mile stretch of single-track from West Palm Beach to Cocoa and then add 40 miles of track between Cocoa and Orlando.
Indian River County, which continued to press forward in the legal fight against the rail service after Martin County reached a settlement with Brightline, may determine its next move at a Jan. 8 meeting. Indian River and Martin counties have been key opponents of the rail service, pointing to concerns about issues such as safety.
“We’re disappointed [with the ruling] but we’re discussing with outside counsel our options on how we move forward,” Kate Cotner, an assistant county attorney in Indian River County, told The Bond Buyer on Wednesday.
The county contended the U.S. Department of Transportation exceeded its authority because the railroad was ineligible for the bonds under federal tax code. Part of the argument involved the federal agency categorizing the rail project as a “qualified highway or surface freight transfer” facility.
Cooper wrote that federal Transportation Secretary Elaine Chao’s approval, in part, met “statutory requirements and was a reasonable exercise of her discretion.”
Chao’s latest extension approval --- the bonds were first approved in December 2017 with a May 31 deadline --- appears to come with a warning that there won’t be another.
Brightline, which is being rebranded as Virgin Trains USA, has meet resistance from Treasure Coast officials and divided members of Florida’s congressional delegation. It currently has stops in West Palm Beach, Fort Lauderdale and Miami and is planned to run north to Orlando. Brightline is also looking to extend the service between Orlando and Tampa.
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