State financing agency facing senators’ scrutiny over bonds for Brightline

April 13–The state agency that issued $1.75 billion of bonds for All Aboard Florida is facing pressure to be more transparent about its role in the railroad's reworked financing plan.

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Florida Senate President Pro Tempore Anitere Flores, R-Miami, and Sen. Debbie Mayfield, R-Melbourne, in letters made public this week, are pressing the Florida Development Finance Corp. to be more forthright.

Flores, chairwoman of the Senate Banking and Insurance Committee, said she is “concerned” about the agency's apparent “informal” handling of All Aboard Florida's bond financing.

All Aboard Florida nearly three years ago began working with the U.S. Department of Transportation and Florida Development Finance Corp. to secure private-activity bonds for its Miami-to-Orlando passenger railroad.

The Department of Transportation in December 2014 gave All Aboard Florida authorization to pursue the $1.75 billion bond allocation, and six months later, the Finance Corp. issued the tax-free bonds.

But in September — mired in legal action related to the bonds and reportedly struggling to court investors — All Aboard Florida revealed it would abandon its financing plan and instead immediately pursue a $600 million bond allocation for phase one of the project and, eventually, another $1.15 billion allocation for phase two.

The U.S. Department of Transportation in November approved the new financing plan, but the Finance Corp.'s actions have been less clear.

In her Feb, 28 letter to Bill Spivey, Finance Corp. executive director, Flores said she is “seeking to better understand what the FDFC believes its role is” in financing All Aboard Florida.

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“I am concerned that the FDFC has informally agreed that it can simply transfer its previous actions and approvals to the new application, without any further consideration of the economic and social impacts of the project it would help fund,” Flores wrote.

Mayfield, chairwoman of the Joint Legislative Auditing Committee — which provides oversight and accountability to government entities, including the Finance Corp. — on March 30 followed up with Spivey on Flores' behalf, asking that he respond by April 10.

“I, too, am interested in the role of the FDFC in this new request and would appreciate a response,” Mayfield, a vocal opponent of All Aboard Florida, said in her letter.

Representatives for Mayfield and Flores on Thursday said Spivey had not yet responded.

But, Finance Corp. spokesman Ray Casas on Thursday said the body's outside counsel responded to Flores last week.

In an April 6 letter provided by Casas, attorney Donna Blanton saidAll Aboard Florida has not submitted a new proposal for consideration by the Finance Corp.

“It would be improper to speculate on what AAF may or may not ask of the FDFC's Board of Directors and how the board may respond,” Blanton said in the letter.

Casas said the Finance Corp. is working on a response to Mayfield.

All Aboard Florida's new financing plan is a critical issue for opponents of the project, including Indian River and Martin counties.

The counties, in a federal lawsuit initiated two years ago, argue the National Environmental Protection Act was violated when the $1.75 billion in bonds was approved before a final environmental report was completed.

But All Aboard Florida in its new bond application promised to spend the $600 million only on work between Miami and West Palm Beach, where an environmental review has been finished — a change which renders the counties' lawsuit moot, according to the company.

All Aboard Florida has asked the U.S. Circuit Court, District of Columbia, to dismiss the lawsuit.Judge Christopher Cooper has yet to rule.

U.S. Department of Transportation officials did not respond to questions about whether All Aboard Florida has applied for its $1.15 billion Phase two financing. AnneMarie Matthews, All Aboard Florida spokeswoman, declined to comment on specifics of funding: “We continue to explore financing options for Phase 2.”

All Aboard Florida is to begin limited Brightline service between Miami and West Palm Beach this summer, with full service to Orlando International Airport several years away.

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