With the Governors of California and Nevada not working on any plans for economic recovery, the $600 million bond offering for the High-Speed rail line between Las Vegas and California has been put on hold.
Earlier this year, California State officials approved a $600 million private activity bond allocation, which was supposed to raise up to $2.4 billion for the project. In a statement, California Treasurer Fiona Ma said “economic uncertainty” has led to the decision to delay the sale of the bonds.”
This makes sense. Neither state governor is giving the large institutional investors any confidence in their ability or even their desire to improve their state’s economic recovery. You need a steady flow of tourists who are traveling between the two locations to ride the train and to have tourists, you need to have an economy that is in recovery mode. Neither one is there and it looks like neither governor even wants to work in that direction. So why invest right now?
As with most things happening right now, everyone is waiting for the election to be over and to rebuild based on the political outcomes.
The project is named Brightline West. The High-Speed rail project between Las Vegas and Southern California has been in the works for two decades with various names and owners. Brightline, a company out of Florida that already has a light rail project operating in Florida, took over this project last year and renamed it “Brighline West”. They have made actual progress and investments towards making this a reality.