Miami-Dade Commissioners question Virgin Trains deal — then approve it

Miami-Dade Commissioners question Virgin Trains deal — then approve it
  • Sumo

One after the other, Miami-Dade County commissioners expressed very big concerns Tuesday with an exclusive, $2.5 billion proposal — complete with a memorandum of understanding — to build a five-stop rail along existing tracks for a new Virgin Trains (aka Brightline) route along the Northeast corridor,

It’s too much money, they said.

Tri-rail protested and says it can do it cheaper.

The way the proposal came forward with an MOU that already had prices and other details ironed out seems shady.

Seven of 13 commissioners pulled it from the agenda because of concerns. Commissioner Sally Heyman wanted to defer it to the next commission meeting. Commissioner Audrey Edmonson was upset that she and Commissioner Jean Monestime had not had an opportunity to provide input on where the stops would be in their respective districts. Commissioner Jose “Pepe” Diaz wants it to be a P3 project. Even Mayor Carlos Gimenez was against it.

“The administration didn’t push this item forward. I want to put that on the record,” Gimenez said.

It was a very aggressive virtual meeting — and the county continues to have technical difficulties — with commissioners lashing at out each other. Worth watching for sheer entertainment purposes. But in the end, they voted 11-2 to authorize the mayor to disregard the MOU and move forward with negotiations anyway.

Only Commissioners Barbara Jordan — who doesn’t want to hear about anything moving forward until the North corridor is moving forward — and Xavier Suarez voted no. The rest gave Gimenez 90 days to come back with something better.

Do these people hear themselves?

Read related: Why is Virgin Trains Aventura station being railroaded? Who is this deal for?

The complaints, questions and issues were centered on the Virgin Trains’ very premature MOU (read: wishlist) that included $30 million a year in access fees for the tracks, $30-$50 million a year for operating costs, buying the trains at $20 million each and then leasing them back to ourselves for another $2 million a year. All to a for-profit company that already got $75 million for a station by Aventura Mall and is taking advantage of the virtual meetings due to COVID19 to railroad this through as well.

It sounds like a horrible deal. Tri-rail, which is much more commuter friendly and won’t fleece the public, says they can do it cheaper, and probably faster. And we’re pursuing this anyway?

The vote Tuesday was to move forward with negotiations disregarding the MOU that already had prices and locations for stops and most of the details worked out, but does anyone really believe that Virgin Trains is going to negotiate in good faith now?

“They made it clear as late as Friday evening with attorneys that the MOU stay itemized or otherwise they don’t want to do it,” Heyman said, adding that she didn’t want to use the county’s whole transportation pot on one corridor. “I am supportive of a commuter rail but not at all costs and not at hindering Miami-Dade county’s chances of having other corridors [completed].”

“To put literally in writing their intentions before our first vote and stacking up our negotiations, it severely challenges if not shackles Miami-Dade in negotiations,” she said. “It’s counter-productive to Miami -Dade County.”

It seems that Virgin Trains was assisted by the county in creating the MOU with more numbers — capital costs and operating and maintenance expenses — than they were supposed to. The original intent was to have them come back with access fees only and the path for federal funding, said Commissioner Rebeca Sosa. Not fares and building costs and maintenance costs.

“That is my biggest concern,” Sosa said, scolding Public Works and Transportation Director Alice Bravo for negotiating the figures. “At the beginning these numbers were not there. It was ‘Let’s negotiate. Let’s get federal funding.’ And now it comes before us with these numbers and no one knows. Nobody negotiated prices with them? So it was all them?”

In the hot seat, Bravo said there were no negotiations and that Virgin Trains provided the numbers themselves so that commissioners did not think the access fees were the only costs.

Really? That’s the excuse? Because commissioners don’t already know there will be other costs involved?

Read related: County commission should rescind mayor’s sweet insider monorail deal

“That was never the original intent,” Sosa said. But then she voted to go ahead with the negotiations, afraid that the county will lose federal funding if the commission waits too long.

Huh? What? Wouldn’t opening it up to Tri-rail and anyone else who wants to get the best proposal allow them to include federal funding in their plan? Aren’t you hurting the other potential proposers and giving Virgin the green light already by moving it along at this point? The answer is yes, they are.

Both Suarez and Gimenez brought up the issue of financial troubles at Virgin Trains, which shut down during the COVID19 pandemic. “Miami-Dade is not going to be bailing out a private company because they’re in trouble,” Gimenez said. “Part of what they put down was their attempt to have us bail them out.

“I wish them luck. I thought it was a very risky venture to begin with,” Gimenez said.

Really? So why even go there?

He also said that COVID19 may change how people move about in the future. Many former commuters may become work-from-home employees, even at the county.

“Most of us I think are at home,” Gimenez said. “We didn’t have to go to County Hall and sit in big chambers and have this meeting. We’ve actually had a very productive meeting in the comfort of my home.

“We really need to think about what is the future of transit and how people get around in this town,” he said.

So, again, why even go there?

After so much hand wringing, the mayor said he would get back to commissioners with a new proposal within 90 days. It will be interesting to see if the proposal comes back with figures much different than those in the rogue MOU.

And if it does, can we trust Virgin Trains?