Nevada Approves Private Activity Bonds for XpressWest
Today, XpressWest received unanimous approval from the Nevada State Board of Finance for the allocation of $200 million in tax-exempt private activity bonds. Nevada’s approval succeeds California’s approved allocation of $600 million in private activity bonds in April and the U.S. Department of Transportation’s allocation of $1 billion in March. The allocations enable XpressWest to market $4.2 billion in bonds to the private market. The project, which is expected to cost $5 billion, will be privately funded.
"This project is a long time coming to Nevada and I'm pleased to take this step forward to bring this vision to reality and bring additional jobs to our State," said Gov. Steve Sisolak. "This plan creates jobs without using taxpayer dollars and without impacting our State's ability to finance future projects, and will allow a new, convenient mode of transportation between Nevada and California."
“This is a historic investment and a huge boost of momentum for a project that will generate thousands of new construction jobs at a pivotal time for Nevada,” said Sarah Watterson, chief development officer for XpressWest. “Large scale construction projects are a critical piece of rebuilding our economy, and private activity bonds are a perfect mechanism to incentivize the private sector to deliver public benefits. We appreciate the leadership of Governor Sisolak and the support from State and County team members. We look forward to working with these partners in moving this project forward.”
“Today is an exciting day for Las Vegas, as America’s first true high speed train is one step closer to reality. Thank you to all of the federal, state, and local agencies that have come together to make this happen,” said Tony Marnell, minority owner of XpressWest. “We want to especially thank Governor Sisolak for his leadership and support, as this project will bring critical jobs and a new mode of transportation to Las Vegas at the right time.”
The project is expected to create over 30,000 jobs during the construction period and support nearly 1,000 permanent jobs upon opening for service. In Nevada, the project is expected to create 10,000 jobs during the construction phase and 350 permanent jobs upon opening. The investment in the infrastructure and the ongoing operations are expected to have over a $6 billion economic impact with over $2 billion of that impact concentrated in the state of Nevada.
XpressWest will offer a much-needed car-free option and a fully electric, zero emission train. The green and safe transportation option will remove three million cars annually from the I-15 and will eliminate one million tons of carbon over a ten year period.
The rail corridor between Las Vegas and Southern California will stretch 170 miles and ridership studies indicate that it will carry approximately 10 million passengers per year upon stabilization. Trains will travel at top speeds of 200 miles per hour and the one way trip is expected to take 85 minutes.
XpressWest is a Brightline affiliated company. Brightline is the first privately funded passenger rail system in the county in nearly a century. It currently operates in South Florida and is under construction to connect Miami-to-Orlando.