SACRAMENTO — Virgin Trains USA has received preliminary approval from a California state agency for the issuance of tax-exempt bonds to finance its Xpress West high speed rail project between Southern California and Las Vegas, Nev.
On Wednesday, the state Debt Limit Allocation Committee recommended that the company receive the first $300 million of its request, contingent on Virgin Trains providing an economic development plan that outlines its goals, and how it plans to achieve them, in the areas of housing, jobs, and workforce development.
In all, Virgin Trains will seek more than $3.2 billion of tax-exempt debt to be issued by a state agency, including more than $800 million in California’s share of U.S. Department of Transportation tax-exempt proceeds. Bloomberg reports the company will also seek $800,000 in bonds from Nevada, plus part of the federal allocation, providing a total of $4.2 billion in tax-exempt financing for the project.
Virgin Trains used a similar funding method to raise money to begin expansion of its Brightline service in Florida to Orlando.
