LAS VEGAS (KTNV) — A proposed high-speed rail line connecting Southern Nevada with Southern California is facing a new challenge.
Brightline says they are experiencing a “minor setback” due to recent bond funding being postponed.
Brightline says that while a deal was reached, it would have been too restrictive.
“These high-speed rail projects have been proposed for the past 35 years, none of which have been successful,” says Steve Budin, a financial expert.
Brightline says financing was postponed due to market conditions, including the pandemic and the election.
13 Action News financial expert Steve Budin says those factors may have played a role in the postponement, but there could be more.
“The bottom line is these bonds are extremely risky and it takes a special investor to have the courage to buy these kinds of bonds because if the rail doesn’t work, you can lose all your money,” says Budin.
Budin says the route’s destination of Victorville, a city over an hour drive outside of Los Angeles, may be cause for a bit of apprehension.
“Why would somebody want to stop short and then have to get in a car and deal with traffic or rent a car, it just doesn’t seem like a complete option,” says Budin.
Brightline believes while this may impact the timeline of construction, they still plan to break ground soon.
A Brightline representative says they will re-evaluate before entering the market again.
“Hopefully this company can take another shot at the bond offering in the future and make it successful,” says Budin.