by Gilbert B Norman
Mr. West Point, I also hold that ridership will be "the measurement that counts".
While there is certainly encouragement in that "faces and fannies" on the WP-MIA segment now open are definitely there (my personal observations as a paying passenger), will there be enough to cover the Debt Service (cash disbursed to both interest and, if required under the Indenture, principal payments)?
Reportedly, the bonds needed to "bankroll" the whole deal, were privately placed, have an 8% coupon rate, and are deemed Private Activity Bonds which exempts the interest earned from the Holder's Federal Gross Income. Somehow, I think the Holders are largely Florida residents, are well known in Tallahassee, and exempt from State Income Tax, as Florida does not have one (just a heavy, and regressive, tax on one's consumption, otherwise known as a Sales Tax).
While I can't be certain, I believe there is an implicit understanding that these Holders will be bailed out by the State and Brightline will become a ward of such. Strong ridership will certainly make any such action more "palatable".
While there is certainly encouragement in that "faces and fannies" on the WP-MIA segment now open are definitely there (my personal observations as a paying passenger), will there be enough to cover the Debt Service (cash disbursed to both interest and, if required under the Indenture, principal payments)?
Reportedly, the bonds needed to "bankroll" the whole deal, were privately placed, have an 8% coupon rate, and are deemed Private Activity Bonds which exempts the interest earned from the Holder's Federal Gross Income. Somehow, I think the Holders are largely Florida residents, are well known in Tallahassee, and exempt from State Income Tax, as Florida does not have one (just a heavy, and regressive, tax on one's consumption, otherwise known as a Sales Tax).
While I can't be certain, I believe there is an implicit understanding that these Holders will be bailed out by the State and Brightline will become a ward of such. Strong ridership will certainly make any such action more "palatable".
Last edited by Gilbert B Norman on Mon May 01, 2023 6:55 am, edited 1 time in total.