AAF engaged Urban to perform independent physical and financial assessments of ongoing construction.
All Aboard Florida, LLC (AAF) is developing and constructing “Brightline,” the only privately held Intercity Passenger Rail Service and Transit Oriented Development (TOD) in the United States. The “Brightline” will provide express Intercity Passenger Rail Service between Orlando and Miami. The service is being developed and construction in three phases.
AAF is currently constructing the first phase between West Palm Beach and Miami, a $1.04 billion, 68-mile transit corridor project. This phase includes 450,000 square feet of station and retail space at Miami, Ft. Lauderdale, and West Palm Beach, a maintenance and repair facility, and procurement of five new trainsets from Siemen’s Transportation Group. AAF has established to begin Phase 1 revenue service in the fall of 2017. Part of funding for “Brightline” includes a $405 million payment-in-kind (PIK) toggle bond.
Phase 1 also includes:
AAF engaged Urban to perform independent physical and financial assessments of the ongoing construction progress and construction invoicing relative to the contractual budgets and schedules as a condition of the PIK toggle bond. Urban accomplishes the assessments by making monthly site visits, examining construction progress at all project locations, reviewing and analyzing financial records and invoicing, and interviewing AAF management. Urban’s primary focus is the portion of the construction funded by the PIK toggle bond investment; however, project success is also determined by Urban’s assessment of the project entirety. Thus, all aspects of construction are addressed in the monthly assessments.
Urban’s services provide a valuable benefit to the success of the “Brightline” Phase 1 by providing confidence to bondholders and verifying AAF’s financial position.