All Aboard Florida Receives Crucial State Backing for $1.75 Billion Loan

"The state board approved All Aboard Florida's request for tax-exempt status because it ruled the train would serve the public and provide an economic boost to the region," writes Dan Tracy for the Orlando Sentinel on the meeting held Wednesday night. "The bonds are not backed by the state, meaning All Aboard Florida is responsible for repaying them."

Nonetheless, over several hundred attended the Orlando meeting, many of whom were bused in from other parts of the state. About half were opposed.

Treasure Coast residents [counties of Martin, Indian River and St. Lucie], including 15 elected officials from the area, argued the trains would ruin the quality of life in many of the small towns along the route by tying up traffic and slowing boats because draw bridges would have to remain down more often.

All Aboard Florida backers included virtually all of Central Florida local, state and congressional leaders.

Tracy explains on the Fox 35 video that the backing of the state commission makes the bonds easier to sell by Coral Gables-based Florida East Coast Industries, owner of the new rail line, as they will be tax-exempt. As Planetizen noted last December, they are called private activity bonds. Tacy indicates the total cost for the train line will be about $2.5 billion.

Along with fares of close to $100 one way, All Aboard Florida expects to make money by developing around its three South Florida stations, including Fort Lauderdale and West Palm Beach. Plans call for apartments, office space, retail shops and restaurants.

In the discussion on the video, Tacy explains that the reason for relatively few stops on the 235-miles line was to maintain speeds as close to 125 mph. The diesel-powered train will not have the same acceleration and deceleration as an electric-powered train.