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governors' letter to rick scott

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March 3,2011 The Honorable Ri ck Sc ott Office of Governor Ri ck Sc ot t State of Florida . The Capitol 400 S. Monroe St. Tallahassee, F L 32399-0001 Dear Gove rn or Scott: We value the dialogue we have had on igh speed rail over the last two weeks. The purp os e of this joint letter is to clearly restate and further amplify how each of the concerns you have raised have been resolved by the structure we have proposed to eliminate financial risk to the State of Florida and its taxpayers. Initially you expressed concerns regarding potential state responsibility for : • Construction cost overruns; • Shortfalls in operating revenue due to low ridership; and • Potential repayment of grant funds if the high speed rail Project discontinues operation aft er opera tions commen ce. We appreciated he opportunity to meet and pro ide you with information and satisfactory assurances on each of these items, At our recent meeting you articulated three add itional con cer ns: • Assurances that the Proj ect will be structured in a manner to eliminate risk to the State of Florida; • The scope of continued involvement by the Florida Department of Transportation ("FDOT") ; and • The test for financial assurance that a successful private sector vendor can meet all obligations for construction and operation of the high speed rail Project. This letter, while addressing each of these issues, does not change the concept previously presented. I t does prov id e additional detail and clar if icatio n of the proposaL 1 . Elimination of risk to the State of Florida A. The non-recourse entity will protect the State of Florida and its taxpayers The key to protecting the State of Florida from risk is the creation of a "non-recourse" entity to be the sub-recipient of the federal grant funds and construct the Florida high speed rail system. Non-recourse entities are a common business tool used to properly allocate risk in large construction projects. By creating a non-recourse entity that is financially independent from the

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8/7/2019 Governors' Letter to Rick Scott

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