Desert high-speed train applies for $4.9 billion federal loan
The company that owns the proposed high-speed train that would connect Victorville to Las Vegas — bypassing Barstow along the way — has applied for a $4.9 billion federal loan.
DesertXpress Enterprises is a privately owned company and previously stated that it would not seek federal grants — which wouldn’t have to be repaid — for the estimated $6 billion project. However, the company has always planned on applying for the Railroad Rehabilitation & Improvement Financing loan, said Lee Haney, spokesperson for DesertXpress.
“We will have to pay this money back,” said Haney. “We’ve been working on the loan application for some time.”
DesertXpress has spent $60,000 over the past two years on lobbying for the RRIF loan processing, according to quarterly lobbying reports filed by Capital Partnerships LLC — the lobbying firm for DesertXpress.
A spokesman for the Federal Railroad Administration would not comment Tuesday on the loan application, saying it was against department policy to comment on RRIF loans.
The company applied for the loan in December, said Haney. The FRA determined that $4.9 billion was needed for the project, although the exact figure still needs to be determined, said Haney. Changes to the project due to the pending environmental study could significantly change the cost.
According to information from the FRA, the loan repayment period can be up to 35 years and can fund an entire project. The loans are normally approved within 90 days.
The final design and construction for the train should start by next year, said Haney. The company is still waiting to get approval on an environmental study before proceeding on the project.
DesertXpress could create the equivalent of 50,000 one-year construction jobs as well as 500 permanent jobs in Victorville, according to the company.
The City of Barstow has opposed the DesertXpress project because of the potential economic effect the train could have on the city. The City Council commissioned an economic study released in October that stated the DesertXpress could eliminate up to 33 percent of the car and bus traffic that passes from Southern California to Las Vegas and could significantly harm the business climate of the city.
Contact the writer:
(760) 256-4122 or kjonas@desertdispatch.com
