The board of the California Infrastructure and Economic Development Bank (iBank) last week approved bonds for a $3.25 billion bond request to go toward a $4.8 billion project by Virgin Trains USA to build a bullet train line of 135 miles between Victorville and Las Vegas.
Since the project will include some 35 miles of rail in Nevada, it will actually be 170 miles total.
Bob Porritt, spokesman for Virgin Trains, commented, “Our project continues to gain momentum and public support, and yesterday’s approval was a big step forward.” He added, “Developing rail between Southern California and Las Vegas will go beyond transportation and will lead to an upshot of jobs and housing for Las Vegas and the Victor Valley region. The environmental benefits are equally impressive and offer a real solution to getting 4.5 million cars off the road each year.”
The state legislature created iBank in 1994 to finance both public infrastructure and private development that helps create jobs and boost the economy. The bonds authorized by iBank last week are the largest in its history.
iBank Chairman Lenny Mendonca, who is also director of the state’s Office of Business and Economic Development, declared, “Moving toward clean, green electrified high speed rail is the future. Yesterday’s vote is evidence of our state’s commitment to making this happen in California.”
California Treasurer Fiona Ma last month approved the first $300 million of tax-exempt, private activity bonds for the project.
Virgin also seeks investment for the Nevada end of the bullet train line. The Nevada Department of Business and Industry has scheduled a meeting November 11 to consider this request.
The bonds for the project would be sold to private investors, not purchased with taxpayer money.
Virgin Trains is looking at a 2023 groundbreaking on the project, which could eventually link Las Vegas with Los Angeles.
