lensovet wrote: ↑Fri Jun 11, 2021 2:25 am
do tell, where exactly does the original bond agreement say anything about the number of tracks laid? or the timing of when the service would go live?
The only real language available publicly is what's in Prop 1A, which guides the process for issuing bonds, but doesn't define the individual bond agreements. Those are typically not available publicly.
And you're right -- Prop 1A doesn't specify the number of tracks. Nor does it mandate that it operates via electricity on Day 1 of operations, but only that it's constructed to eventually achieve electrified travel at up to 220 mph.
mandated in the 2010 agreement with the Feds is 120 miles of track completed by Dec 31, 2022. That's now 19 months away.
We all know that isn't going to happen. We've known that before the Trump Admin did the initial withholding on the $928B in remaining Federal funding, and teased trying to claw-back the original $2.5B from ARRA. As hashed out two years ago, the Feds were within the letter of the law to hold back funds and possibly claw back what had already been squandered because of repeated missed milestones and project checkpoints.
With Biden and Pothole Pete restoring the remaining $928B, they're choosing to look the other way on the missed checkpoints, but the settlement announced this week doesn't change the project end dates. Those are still in effect.
2021 Settlement: https://www.railwayage.com/wp-content/u ... May-26.pdf
2017 Amended 2010 Agreement : https://railroads.dot.gov/sites/fra.dot ... ment_1.pdf
And yes, I'm sure the current administration will eventually cut them slack on the 2022 completion date, but that agreement only covers the $3.5B that came from the Feds.
It's less clear what covenants exists in bonds issued by the Agency. If there are similar project milestones, it will be quite interesting to see what those bondholders do in about 19 months.