The Grand Irony, Henry Flagler Wouldn’t Have Bought All Aboard Florida Bonds, SLR/IRL

 

Stuart's City Seal The original seal of Stuart was designed by a committee of three, A. T. Hogarth, J. A. Hancock and Curt Schroeder. It showed the confluence of the north and south forks of the St. Lucie River and the Florida East Coast railroad bridge. The original seal, adopted when Stuart was incorporated on May 7, 1914, served through the 1970s. (Sandra Henderson Thurlow, Stuart on the St Lucie)
Stuart’s City Seal
The original seal of Stuart was designed by a committee of three, A. T. Hogarth, J. A. Hancock and Curt Schroeder. It showed the confluence of the north and south forks of the St. Lucie River and the Florida East Coast railroad bridge. The original seal, adopted when Stuart was incorporated on May 7, 1914, served through the 1970s. (Sandra Henderson Thurlow, Stuart on the St Lucie)

The ironies of life in Stuart and Martin County are grand.

Here are a few:

  1. Business tycoon, Henry Flagler, is said to have first planned to run his railway through and develop Sewall’s Point and then across the St Lucie River to Rocky Point rather than developing Palm Beach. Title problems with the Hanson Grant of which Sewall’s Point led Henry to change the path of his railroad, instead taking it through Potsdam, later named Stuart.
  2. Stuart’s orignal seal, adopted in 1914, shows only the railroad going through Stuart as there was no “auto bridge” at that time. The docks sticking out into the St Lucie River can be seen on the seal due to their importance to property and importance to commerce at that time in history. The St Lucie River was as important to “commerce” as  the train at that time. Just like tourism and property values are today.
  3. Stuart was first on the north side of the railroad over the St Lucie River. When leaders of the town wanted to change the name to “Port St Lucie” the railroad company denied as there was already a town by the same name north of Potsdam. So the clever leaders of the town just moved the train station over the river to Potsdam and changed the name to Stuart. When things don’t work, smart business men take another path…
  4. All Aboard Florida and East Coast Railroad, Henry Flagler’s company, is now owned by Fortress their plan to expand Mr Flagler’s business is likely to fail.
City of Stuart seal showed the railroad and an auto bridge in 1978. Seal taken from city stationary. Courtesy of Sandra Henderson Thurlow.
City of Stuart seal showed the railroad and an auto bridge in 1978. Seal taken from city stationary. Courtesy of Sandra Henderson Thurlow.

 

Today the proposed All Aboard Florida is not following Henry Flagler’s one famous quote: “To help others is to help yourself,” in the age of paternalism such was the justification of the railroad….not today… Fortress Corporation is doing nothing to help others, like putting a stop at every pineapple plantation , but rather figuring how much money they can make for themselves barreling right through and then failing for bigger and better things…like Panama Canal freight.  Luckily their plan is falling apart.

The following information was simplified and explained by Mr Len Sucsy, of CARE, Citizens Against Railroad Expansion. He is a business expert. He gives us the inside scoop in layman terms we can understand.

You probably know about the Martin County and Indian River County lawsuits that are pending, but the specifics of All Aboard Florida’s failing business deal makes its vulnerability easier to understand:

“All Aboard Florida is having difficulty selling their $1.7 billion tax
exempt, junk bond issue. Municipal bond investors are being quoted in
Bloomberg, the Chicago Tribune, and other media sources as being
“uncomfortable” with the business model not only because no passenger train in the
history of the country has been profitable but also the real estate
above and around some train stations is speculative and yet to be
built. Other freight rail cash-flowing services are also future
events and speculative. The high leverage of the deal is also been
noted…. a problem. A well known muni manger of a $36 billion fund passed on the deal for
“credit risk” reasons.

Fortress, Inc., parent company of All Aboard Florida and Florida East
Coast Railway, is closing its flagship macro hedge fund. At its peak, it managed
$1.6 billion which now stands at $400 million due to investor flight. Last year the fund lost .6% and this year is down 17.5%. Managing partner and billionaire co-founder of Fortress, Michael Novogratz will leave the firm.
The company share price (FIG, NASDQ) has dropped 32% this year…”

AAF CAN’T SELL ITS BONDS. THEY ARE A BAD DEAL. SPREAD THE WORD. WRITE IT ON FACEBOOK. CALL YOUR FRIENDS  UP NORTH. PUT UP A SIGN.

Maybe our sign should read: “HENRY FLAGLER WOULDN’T HAVE BOUGHT AAF BONDS.”

A train on the original wooden bridge that spanned the St Lucie River 1894. Historical Society of Martin County.
A train on the original wooden bridge that spanned the St Lucie River 1894. Historical Society of Martin County via Sandra H. Thurlow’s book St on the St Lucie.

Citizen’s Against the Train: (https://www.citizensagainstthetrain.com)

CARE Citizens Against Rail Expansion: (https://www.saveourfl.com)

Not All Aboard Florida: (https://www.floridanotallaboard.net)

Chicago Tribune article: (https://www.chicagotribune.com/news/sns-wp-blm-florida-rail-e93cdf80-6e97-11e5-91eb-27ad15c2b723-20151009-story.html)

Jacqui Thurlow-Lippisch

Jacqui Thurlow-Lippisch

About Jacqui:

Although born at Travis Air Base, California, Jacqui considers herself a native of Stuart, Florida, having moved there at eight months old. Her father’s family, originally from Syracuse, New York, has lived in Stuart since 1952. Her mother is a 5th generation Floridian from Gainesville.

Jacqui is journalism and German graduate of the University of Florida, and an education master’s graduate of the University of West Florida. She went on to teach both English and German and after a serious accident of breaking her neck, started selling real estate. In 2008 she ran for the Town of Sewall’s Point Commission and has served since 2008; She is former mayor. During this time she saw the opportunity to help showcase the work of a locally formed river group, the River Kidz, and this has been her passion ever. She incorporates youth/river education into her political work for the St Lucie River/Indian River Lagoon.

Jacqui is the treasurer/secretary of the Treasure Coast Regional Planning Council; has chaired the Florida League of Cities Environmental and Energy Committee; was chair, and long time member of the Treasure Coast Council of Local Governments; is an alternate for the Water Resources Advisory Commission for the South Florida Water Management District; and a board member for Harbor Branch Oceanographic Institute Foundation. She also serves as an (ex-officio) board member for the Rivers Coalition Defense Fund, and is head administrator for the River Kidz.Jacqui is a Daughter of the American Revolution.

Jacqui’s reach involves not only local, but state and federal government. In 2013,  she served on Senator Joe Negron’s panel for the Select Senate Hearing on the Indian River Lagoon and Lake Okeechobee. In 2014, she actively supported the elections of both Senator Joe Negron and Congressman Patrick Murphy who have both been strong supporters of Indian River Lagoon issues. In 2015, she is part of the Florida League Cities Treasure Coast Advocacy team. Jacqui received the Everglades Coalition’s prestigious 2015 “John V. Kabler Award” for “Grassroots Activism.” Most recently she has been recruited as a fellow by the University of Florida/IFAS’s Natural Resources Leadership Institute Class XV.Jacqui is running for Martin County Commissioner District 1, 2016.

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