Virgin Trains USA has delayed the construction of a high-speed rail between Las Vegas and Southern California, which was set for development in 2020. The plans were docked after the company failed to secure tax abatements this legislative session.
Not getting the abatements will likely push the start of the planned construction back at least two years. According to the article, Virgin Trains was seeking partial abatement of sales and property taxes, though the company would still pay the portion of those taxes tied to schools.
“There’s no public funding,” Bob O’Malley, VP of Virgin government affairs, told the Review Journal. “We’re taking the responsibility to build this infrastructure off the public, still providing that public service. Again, $4 billion is a big lift and just like in Florida, having policies in place that encourage that investment are critical to making to happen.”
According to O’Malley, the project would spur $1.98 billion in economic impact, created over 1,000 construction jobs, transport 5.5 million visitors to Las Vegas, and create $14 million in environmental benefits per year.
Source: Las Vegas Review Journal
