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Cocoa moves forward with Brightline station
Plans for a Brightline station on Florida's Space Coast are moving ahead after the City of Cocoa received $2 million in state funding, even as a new credit report raises concerns about the passenger rail company's financial health.
COCOA, Fla. - Plans for a Brightline station on Florida's Space Coast are moving ahead after the City of Cocoa received $2 million in state funding, even as a new credit report raises concerns about the passenger rail company's financial health.
The state grant will help pay for an access road to a planned multimodal station near U.S. 1 and State Road 528.
Local perspective:
City officials said the project remains a priority because they believe it will spur tourism, business growth and economic development in the region.
The funding comes as the agency Fitch Ratings downgraded Brightline's credit rating to CC, citing concerns about the company's ability to repay its debt. Financial analyst Gary Kaltbaum said the downgrade reflects significant financial challenges.
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"If it was a restaurant, they'd shut down. If they were selling tires, shut down," he said.
Despite the downgrade, Kaltbaum said he does not expect Brightline to cease operations because of its importance as a transportation system.
"Government looks at it as an asset, moving people from one place to the other. So I think that is the last possibility... I think they're going to go through heaven and earth to make sure it doesn't."
He said Brightline will likely restructure its debt, with bondholders and the company's owners expected to absorb losses.
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Cocoa officials said they remain committed to the project, emphasizing that the station is about more than passenger rail.
"We want to benefit from the tourism it will bring, from the business it will bring, from the development that it will bring."
The city hopes to have the new station open by 2030. Brightline, meanwhile, pointed to its latest operating figures, saying June ridership and revenue were both up 15% compared with the same month last year.
The Source: This story was written based on information shared by the City of Cocoa, Fitch Ratings, and Financial analyst Gary Kaltbaum.