Austin, TX – Public documents show Texas Central has deeded property from Texas landowners to the Japanese Government through an offshore entity set up in the Cayman Islands.
The impact of this is that the Japanese government required Texas Central to put up the land, already acquired along the affected route, as collateral for the sizable loan owed to them. Texas Central filed a “Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing;” the beneficiary of all of these deeds is an offshore entity named “Japan Texas High-Speed Railway Cayman GP.”
Texas Central did not disclose the existence of this offshore beneficiary to any of the landowners it convinced to sign an option contract. Nor did it disclose its plans to use the property purchased through the option contracts to secure a loan from the Japanese government.
“Texas Central has lied over and over to Texans,” said State Representative Cecil Bell, Jr. “Texas Central said this project would cost $10 billion, now we learn their estimated costs have ballooned out of control to $30 billion. Texas Central said that this project would be privately funded but they are now actively seeking funding through a stimulus bill in Washington, D.C. They also claim to be a Texas company, yet we now know that they deeded Texas properties to the Japanese Government. Texas Central must be stopped before more Texans are duped and Texas taxpayers end up on the hook for the exorbitant cost of this project. Many of my constituents’ family members fought and died for the land they own. To take their land and give it to a foreign government under these circumstances is an insult to not only these families, but to every single Texan that cares about private property rights and our way of life.”